April 2 (GeokHub) — Amazon is in advanced discussions to acquire satellite communications firm Globalstar in a deal reportedly valued at around $9 billion, signaling a major escalation in the race for space-based internet services.
The potential acquisition underscores Amazon’s growing ambition to compete directly with SpaceX and its dominant Starlink satellite network in the fast-expanding low-Earth orbit (LEO) internet market.
Globalstar, headquartered in Louisiana, operates a network of low-orbit satellites that provide voice, data, and tracking services to governments, enterprises, and consumers worldwide.
By acquiring the company, Amazon would gain critical infrastructure and expertise to accelerate its own satellite ambitions under its LEO project, aimed at delivering high-speed internet globally.
The move comes as demand surges for reliable connectivity, especially in remote and underserved regions.
Complications in the Deal
Negotiations are ongoing, with several complexities still unresolved. One key factor is Apple, which holds a significant minority stake in Globalstar.
This ownership has introduced additional layers to the discussions, as Amazon may need to navigate agreements involving Apple as part of any final deal.
Neither Amazon nor Globalstar has publicly confirmed details of the negotiations.
Rivalry with Starlink Intensifies
Amazon’s satellite push is widely seen as a direct challenge to Starlink, which has established a commanding lead in the sector with thousands of satellites already in orbit and millions of global users.
Starlink has become a major revenue driver for SpaceX, serving individuals, businesses, and government clients—including defense-related operations.
Amazon’s own network is still in earlier stages of deployment but aims to scale rapidly to compete in the same markets.
Market Reaction and Industry Impact
Shares of Globalstar surged following reports of the talks, reflecting investor optimism about the potential deal. Meanwhile, Amazon’s stock saw a slight decline amid the news.
The possible acquisition highlights intensifying competition in the satellite internet industry, where companies are investing heavily to secure dominance in what is expected to be a multi-billion-dollar global market.
Analysis: A New Space Race in Connectivity
The battle between Amazon and SpaceX represents a broader shift in how internet infrastructure is being built—from ground-based networks to space-based systems.
If completed, the deal could significantly strengthen Amazon’s position, accelerating its ability to challenge Starlink and reshape the future of global connectivity.
