Amazon has stars in its eyes. The tech giant is reportedly negotiating to buy satellite telecom group Globalstar in its quest to build a low Earth orbit satellite business to compete with SpaceX’s Starlink internet service.
However, one issue could complicate matters: Apple’s 20% stake in Globalstar, which it purchased in 2024 as part of a $1.5 billion investment to enhance the company’s constellation and ground infrastructure, according to the Financial Times. This requires talks between Amazon and Apple.
Amazon declined to comment, and Apple has not responded to requests for comment, FT reported.
Last October, Bloomberg reported that Globalstar was mulling a sale and had held early talks with SpaceX.
Looking to bolster Leo
Amazon has been pushing ahead with its own satellite-based texting business, dubbed Leo, and launched the first batch of satellites for its internet constellation last year. The company has more than 180 satellites in orbit, and it’s aiming to roll out commercial service later this year.
However, its deployment is overshadowed by SpaceX, the dominant player, which operates more than 10,000 active satellites. Starlink services more than nine million users globally, and generates 50% to 80% of SpaceX’s revenue.
Starlink serves individual consumers, businesses, and governments, including U.S. national security agencies, through its Starshield variant. Leo is targeting similar customers.
In February, Amazon was forced to seek a two-year extension of a July deadline from the Federal Communications Commission to launch 1,600 satellites. Amazon plans to have about 700 satellites in space by the middle of this year, but has said that the build-out of its service is hampered by a launch-capacity shortage, according to regulatory filings.
Amazon has inked deals with JetBlue and Delta for internet services on flights beginning in 2027 and 2028, respectively.
Preparing for a satellite showdown
Globalstar was founded in 1991, and in recent months its shares have risen amid takeover speculation, reaching a market capitalization of about $9 billion on Wednesday. Its stock is up about 230% over the past year, as investors have wagered it could be a challenger to SpaceX.
Globalstar has attracted interest from other players as companies look to develop their own constellations of low Earth-orbit satellites.
SpaceX, meanwhile, has filed for an initial public offering, according to Reuters, setting the stage for what could become the largest stock market listing on record. Analysts estimate that its Starlink satellite business would drive the bulk of SpaceX’s potential $1.75 trillion valuation.
For more on the renewed race to space, check out our coverage of NASA’s Artemis II mission — the first crewed lunar journey in over 50 years.
