Key Highlights
- Satellite communications provider Globalstar (GSAT) has entered advanced acquisition discussions with Amazon, with the deal valued at approximately $9 billion.
- Bloomberg sources indicate the announcement could arrive by Tuesday, April 15.
- Shares of Globalstar climbed roughly 15.7% during premarket hours following the disclosure.
- Apple maintains a 20% ownership position in Globalstar through a $1.5 billion commitment made in 2024, introducing potential negotiation challenges.
- Over the trailing twelve months, Globalstar shares have climbed 273%, driven by persistent acquisition rumors.
According to Bloomberg’s latest reporting, Amazon has progressed to advanced stages of negotiations to purchase satellite communications company Globalstar. The potential transaction carries an estimated valuation of $9 billion. Following this disclosure, GSAT shares rose approximately 15.7% during Monday’s premarket session.
Sources with knowledge of the discussions told Bloomberg that a formal announcement might arrive as early as Tuesday.
Should the acquisition finalize, Amazon would secure a significant advantage in its ambition to establish a comprehensive low Earth orbit (LEO) satellite internet infrastructure — creating direct competition with SpaceX’s Starlink service.
Amazon’s satellite initiative, known as Project Kuiper, currently operates with approximately 180 satellites orbiting Earth. This figure pales in comparison to SpaceX‘s fleet of over 10,000 active satellites. Acquiring Globalstar would provide Amazon with immediate infrastructure expansion capabilities.
This Bloomberg disclosure arrives shortly after the Financial Times published similar reporting earlier this month, suggesting Amazon was approaching final stages of a Globalstar acquisition. The convergence of these reports has strengthened investor conviction that a deal is imminent.
Apple’s Ownership Position Creates Complexity
A significant complicating factor involves Apple’s approximately 20% equity position in Globalstar, established through a $1.5 billion capital commitment in 2024. This investment accompanied Globalstar’s provision of satellite communication capabilities for iPhone’s emergency SOS functionality.
To complete the transaction, Amazon must engage in direct discussions with Apple regarding this ownership stake. These negotiations carry substantial weight given Apple’s dual role as both a major Globalstar service customer and significant equity participant, making its involvement critical to any transaction structure.
Apple’s potential response to an Amazon acquisition remains unclear, particularly considering the two companies compete across multiple technology sectors.
Remarkable Twelve-Month Performance
Globalstar has commanded significant investor attention throughout the past year. The stock has surged 273% over the trailing twelve months, propelled primarily by expectations that its LEO satellite network would attract acquisition interest.
The company presently holds a market capitalization of approximately $9.41 billion, with typical daily trading volume averaging around 833,000 shares.
With the proposed acquisition price hovering near $9 billion, market participants are monitoring whether Amazon will offer a premium above current trading levels — and how Apple’s position as stakeholder and service partner will influence the final terms.
Globalstar has delivered year-to-date gains of roughly 19.86% entering this week.
During Monday’s premarket trading session, GSAT shares advanced approximately 15.7%.
