Recent reports have revealed that tech giant Amazon is in advanced talks to acquire satellite communications company Globalstar, in a strategic move aimed at bolstering the company’s efforts to compete with the Starlink service operated by SpaceX, owned by billionaire Elon Musk, amidst the intensely heated low Earth orbit broadband market. This move highlights the strategic importance that orbital communication networks have gained in the modern tech world, as major global companies race to provide borderless internet services.
According to a report published by the Financial Times on Wednesday, the potential deal values Globalstar at approximately $9 billion, based on sources familiar with the negotiations. This step represents a qualitative leap in the race to control commercial space and provide reliable satellite internet services worldwide.
The quest for a buyer and multi-billion-dollar ambitions
These talks come as the culmination of a sales process initiated by Globalstar in October 2025. At the time, Bloomberg reported that the company was working with an investment bank to explore the possibility of a sale to a potential buyer.
The company’s chairman, James Monroe, controls approximately 59 percent of Globalstar shares. According to information published by The Information platform, Monroe informed close associates and partners of his desire to complete the sale at a value exceeding the $10 billion barrier, reflecting great confidence in the company’s space infrastructure and its strategic value in the current market.
The Apple complication and the strategic iPhone partnership
One of the most prominent complications facing any potential acquisition deal is Apple, which holds a 20 percent stake in Globalstar shares. This stake followed a massive $1.5 billion investment announced in late 2024.
That strategic deal included precise financial details, including:
- A direct cash injection of $1.1 billion.
- The purchase of $400 million in shares.
- Allocating 85 percent of Globalstar’s network capacity for iPhone satellite communication services.
Consequently, any entity acquiring the company will have to negotiate terms directly with Apple, given that the iPhone satellite messaging and emergency services rely entirely on Globalstar’s infrastructure.
SpaceX steps into the fray and crowds out Amazon
At a time when the Financial Times report focuses on Amazon’s role, several sources in the satellite communications sector indicate that SpaceX remains a fierce competitor and strong contender in the acquisition struggle.
In this context, satellite industry analyst Tim Farrar wrote on March 24 that SpaceX is likely to submit a bid surpassing Amazon’s to acquire Globalstar.
“SpaceX’s potential move stems from its desire to further consolidate Starlink’s dominance, cut off Amazon, and prevent it from expanding its appeal in the satellite sector.”
Viverse Network also reported on March 31 that new leaks suggest SpaceX is the frontrunner to acquire the company, having entered the scene with the goal of presenting a financial offer that outperforms its direct rival.
Project Kuiper and the race against time
For Amazon, acquiring Globalstar represents a lifeline and a golden opportunity. The company has invested more than $10 billion in Project Kuiper, its proprietary satellite constellation. As of late March, the company had deployed only 214 satellites into orbit.
Therefore, acquiring Globalstar’s spectrum assets and existing infrastructure could significantly help Amazon narrow the gap with Starlink. Adding to the urgency of this move is that Amazon faces a strict regulatory deadline requiring it to launch at least 1,600 satellites by July 2026.
Strong financial performance and an open-ended future
Globalstar shares have seen significant gains, more than doubling in value over the past year. Shares traded around $61 in recent weeks, giving the company a market capitalization of about $7.95 billion as of March 30. Financially, the company recorded record revenues of $273 million for 2025, achieving a 9 percent increase compared to the previous year.
To date, no deal has been officially finalized. Sources have warned that talks remain subject to collapse, meaning the company could still remain independent. The fate of the planned satellite constellation known as C3, and its strategic relationship with Apple under any new owner, remains an open question awaiting answers in the coming months.
In conclusion, this investment battle among tech giants highlights the value of limited space resources. Whether it ends with an acquisition by Amazon or SpaceX emerging as a last-minute victor, the satellite internet landscape is poised for radical changes that will redraw the contours of this vital sector for years to come, with the end consumer being the most eager observer of this multi-billion dollar battle’s outcome.
Frequently Asked Questions
What is the expected value of Amazon’s acquisition deal for Globalstar?
Reports indicate that the potential deal values Globalstar at approximately $9 billion, while its chairman aims to exceed the $10 billion mark.
Why is Amazon seeking to acquire this company?
Amazon aims to leverage Globalstar’s infrastructure and spectrum assets to enhance its Project Kuiper, narrow the competitive gap with the Starlink service, and meet the regulatory deadline to launch 1,600 satellites by 2026.
What is Apple’s role in this deal?
Apple holds a 20 percent stake in Globalstar following a $1.5 billion investment. Apple also relies on 85 percent of the company’s network capacity to power emergency and satellite messaging services on iPhones, forcing any new buyer to negotiate with it.
Are there other companies competing with Amazon for the acquisition?
Yes, analyst leaks and industry sources indicate that SpaceX is seeking to present a financial offer superior to Amazon’s, aiming to protect Starlink’s dominance in the satellite internet market.
