Amazon in talks to acquire Globalstar to challenge Starlink

Amazon is negotiating with telecommunications company Globalstar to acquire its assets, valued at nearly $9 billion, in a move aimed at competing with Elon Musk’s Starlink, the Financial Times reports, citing sources.

Key issues under discussion include the stake held by Apple, which owns 20% of Globalstar. In 2024, Apple invested $1.5 billion, and Globalstar reserved 85% of its satellite network capacity for Apple’s use in sending text messages outside cellular coverage areas.

Shares of Globalstar, founded in 1991 and operating low-Earth orbit satellites, surged amid speculation about a potential acquisition. Analysts note that such a purchase would significantly boost Amazon’s capacity to develop its own satellite communications business.

Amazon’s Kuiper project aims to provide global internet coverage via low-orbit satellites, but it currently lags behind Starlink in both the number of operational satellites and service speed.