Key Takeaways
- Satellite communications provider Globalstar (GSAT) is reportedly nearing a $9 billion acquisition by Amazon.
- According to Bloomberg, the deal announcement may come as soon as Tuesday, April 15.
- Shares of Globalstar jumped approximately 15.7% during premarket hours on the news.
- Apple’s 20% ownership position in Globalstar — stemming from a $1.5 billion 2024 investment — complicates potential negotiations.
- Over the last year, Globalstar shares have skyrocketed 273%, driven largely by acquisition rumors.
According to a Bloomberg report, Amazon is pursuing an acquisition of satellite communications company Globalstar in a transaction valued at approximately $9 billion. The revelation triggered a roughly 15.7% surge in GSAT shares during Monday’s premarket session.
Sources with knowledge of the negotiations told Bloomberg that an official announcement could arrive as early as this Tuesday.
Should the acquisition go through, Amazon would gain immediate access to established satellite infrastructure, significantly advancing its efforts to compete in the low Earth orbit (LEO) satellite internet market against SpaceX’s Starlink network.
Amazon’s satellite initiative, known as Project Kuiper, currently operates approximately 180 satellites orbiting Earth — a fraction of the more than 10,000 satellites deployed by SpaceX. Acquiring Globalstar would provide Amazon with a substantial leap forward in satellite capacity and operational capability.
This Bloomberg report comes on the heels of similar coverage by the Financial Times earlier this month, which also indicated Amazon was close to finalizing a Globalstar acquisition. The consistency between these reports has bolstered investor confidence that a deal is imminent.
Apple’s Investment Creates Complexity
A significant complicating factor involves Apple’s approximately 20% equity position in Globalstar, acquired through a $1.5 billion investment in 2024. This investment was part of an arrangement that enables Globalstar to provide satellite connectivity for Apple’s iPhone emergency SOS functionality.
For the transaction to proceed, Amazon will need to reach terms with Apple regarding this substantial ownership stake. This negotiation carries considerable weight given that Apple serves both as a major Globalstar customer and as a significant shareholder, making its role critical to any deal structure.
How Apple might react to an Amazon acquisition remains unclear, particularly given that the two tech giants compete across numerous product categories.
Shares Already on a Massive Trajectory
Globalstar’s stock hasn’t been a hidden gem. Shares have climbed an impressive 273% over the trailing twelve months, fueled predominantly by speculation that its LEO satellite assets would attract a buyer.
The company’s current market capitalization hovers around $9.41 billion, with typical daily trading volume averaging about 833,000 shares.
Given the reported deal valuation of approximately $9 billion, market participants are keenly observing whether Amazon will offer a premium above current trading levels — and what role Apple will ultimately play as stakeholder, potential seller, or negotiating obstacle.
Year-to-date, Globalstar shares had gained roughly 19.86% prior to this week’s developments.
During Monday’s premarket trading session, GSAT shares were changing hands up approximately 15.7%.
