Globalstar Rallies On Report That Amazon Is In Buyout Talks

Globalstar Inc. Its shares rose more than 20% in recent trading following a Financial Times report that Amazon.com Inc. was in talks to buy the satellite provider.

The deal would strengthen Amazon’s efforts to establish its own satellite operation, the newspaper reported, citing unidentified people with knowledge of the discussions. The Times said the two sides were in negotiations over some of the complexities of the transaction.

Bloomberg News reported last year that Globalstar was exploring a potential sale and was in early talks with Elon Musk’s SpaceX, among other potential suitors.

Meanwhile, Amazon has placed more than 200 internet satellites into orbit as part of its Leo program, previously called Project Kuiper. The Seattle-based company aims to operate more than 7,700 low-orbit satellites that will compete with SpaceX’s Starlink service in providing high-speed internet access.

Satellite broadband is increasingly seen as a viable alternative to ground-based service, especially for connecting remote or rugged areas. Starlink has more than 9,600 satellites in orbit and more than 10 million active users.

Amazon is still building and testing its service, and adding Globalstar’s network will give it a big boost. Globalstar has approximately 800,000 subscribers on mobile satellite services by the end of 2025.

An Amazon spokesman declined to comment. Globalstar, headquartered in Covington, Louisiana, did not immediately respond to requests for comment.

Apple Inc. could possibly have a say in Globalstar’s future, people familiar with the matter told Bloomberg. It offers a Globalstar offering that allows consumers to send messages and contact emergency responders when out of cell phone coverage.

In 2024, the iPhone maker invested approximately $1.5 billion in Globalstar to strengthen the infrastructure. As part of the agreement, Apple purchased 20 percent of the company.