Globalstar stock pops 15% on report Amazon is weighing an acquisition
Globalstar Chairman and CEO Jay Monroe rings the opening bell at the New York Stock Exchange on April 21, 2014.
Brendan McDermid | Reuters
shares globalstar More than 15% rise in extended trading on Wednesday after Financial Times reported Amazon According to information provided by sources familiar with the matter, it is in talks to purchase the satellite communications company.
The companies were still negotiating some of the complexities of the deal after lengthy talks, the Times reported. One of the factors that makes things difficult is this: Apple It took a 20% stake in Globalstar in 2024 as part of a $1.5 billion investment to strengthen the company’s constellation and ground infrastructure, according to the FT.
Amazon declined to comment. Representatives for Globalstar did not immediately respond to a request for comment.
A deal with Globalstar could strengthen Amazon Leo, the company’s space internet service. Amazon has launched nearly 200 satellites into low Earth orbit since last April and aims to begin commercial service later this year.
The company plans to deploy a constellation of approximately 7,700 satellites, although it faces delays in satellite deployment milestones. Amazon asked the Federal Communications Commission in January for more time to meet a deadline requiring it to launch about 1,600 satellites by July 2026.
Amazon is racing to compete with SpaceX’s Starlink, which has a significant advantage with more than 10,000 satellites in orbit and more than 9 million users.
Bloomberg It was reported last October that Globalstar was exploring a potential sale and was in early talks with Elon Musk’s SpaceX.
