Amazon is in advanced discussions to purchase Globalstar Inc., a deal that could markedly quicken the e-commerce giant’s push to establish a robust low-Earth-orbit (LEO) satellite network and challenge SpaceX’s commanding lead in orbital broadband.
Sources close to the negotiations told Bloomberg an announcement might come as early as Tuesday, though a binding agreement remains elusive and the timeline could still shift. Neither company has commented publicly, but the prospect alone has ignited investor enthusiasm.
Globalstar’s shares jumped roughly 19 percent in pre-market trading, lifting its market capitalization to about $9.4 billion—a near-quadrupling over the past year. The valuation reflects growing recognition that the satellite sector’s momentum is no longer confined to visionary startups; established operators with live constellations now command premium attention from deep-pocketed tech incumbents.
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Amazon has poured billions into its satellite initiative, rebranded last November as Amazon Leo after years under the Project Kuiper banner. The goal is ambitious: a constellation ultimately numbering more than 3,200 satellites designed to deliver high-speed broadband to underserved and remote regions, with consumer service eyed for mid-2026. Yet progress has trailed expectations. Only about 240 satellites are currently in orbit, far short of the Federal Communications Commission mandate to have roughly 1,600 operational by July.
Amazon has petitioned for an extension or waiver, underscoring the logistical and regulatory headwinds that have slowed deployment despite secured launch capacity from multiple providers, including its own Blue Origin ties through founder Jeff Bezos.
With a functioning LEO network already aloft and proven expertise in mobile satellite services, the acquisition would hand Amazon an immediate operational backbone. Bloomberg Intelligence analyst John Davies notes that Globalstar’s existing infrastructure could meaningfully compress Amazon’s timeline for achieving meaningful coverage and scale—critical in a market where first-mover advantage is measured in orbits rather than quarters.
Unlike Starlink’s massive broadband focus, Globalstar has specialized in direct-to-device connectivity for phones and IoT assets in low-coverage zones. It currently powers Apple’s Emergency SOS via satellite feature on iPhones, serving nearly 800,000 mobile satellite subscribers at the close of 2025 and showing particular strength in commercial IoT growth.
However, any transaction will require navigating Apple’s substantial influence. In 2024, the iPhone maker committed roughly $1.5 billion, $1.1 billion in cash plus a $400 million equity infusion, for a 20 percent stake in Globalstar, explicitly to expand capacity for its satellite emergency services. That relationship is not merely financial; Apple’s product roadmap is intertwined with Globalstar’s build-out plans.
Davies observes that the Cupertino giant “will not want to alter its plans,” implying Amazon must secure Apple’s blessing or structure safeguards to preserve iPhone functionality. Parallel negotiations between Amazon, Globalstar, and Apple are reportedly underway to resolve these complexities, including spectrum allocation and service continuity.
Roots, Revenue, and the Broader Satellite Boom
Globalstar’s pedigree traces to a 1990s joint venture between Qualcomm and Loral, with its first LEO satellites launching in 1998. Chief Executive Paul Jacobs, a former Qualcomm leader and son of co-founder Irwin Jacobs, brings deep semiconductor and wireless heritage that aligns neatly with Amazon’s hardware ambitions.
The company’s modest but reliable revenue, roughly $273 million for 2025, stems from a diversified base of duplex voice/data, SPOT personal trackers, and expanding IoT applications. While dwarfed by Starlink’s projected $9 billion-plus in 2026 revenue from more than 10 million active users and nearly 10,000 satellites, Globalstar’s spectrum holdings in L- and S-bands offer complementary strengths for hybrid broadband and direct-to-cell services.
Satellite broadband is exploding as LEO economics improve and terrestrial infrastructure proves inadequate for truly global coverage. Industry forecasts point to the market expanding from roughly $12–14 billion today to $33–47 billion by 2030–2035, propelled by 14–18 percent compound annual growth.
Demand surges in rural connectivity, maritime and aviation mobility, enterprise edge computing, and disaster response—precisely the arenas where Amazon’s AWS cloud infrastructure could create powerful synergies. A combined Leo-Globalstar network might enable seamless, low-latency links for remote warehouses, autonomous vehicles, or even Prime Air drone operations, turning orbital assets into a strategic extension of Amazon’s terrestrial empire.
Starlink remains the undisputed frontrunner, its vertical integration from rockets to user terminals delivering unmatched scale and velocity. Yet Amazon’s entry, bolstered by manufacturing prowess, global distribution muscle, and an enterprise customer base numbering in the millions, could reshape the competitive dynamic. Analysts see the deal as a pragmatic shortcut around pure organic build-out, potentially accelerating regulatory approvals and spectrum utilization while mitigating launch cadence risks.
However, regulatory scrutiny from the FCC and international bodies is expected to intensify over orbital congestion, spectrum interference, and national-security implications. Integrating two distinct architectures without disrupting Apple’s services demands technical finesse. And while Globalstar’s smaller fleet is an asset today, scaling it to rival Starlink’s density will still require substantial capital and launch cadence acceleration.