Amazon in $9B Talks to Acquire Globalstar Satellite Provider

This article summarizes reporting by Reuters and the Financial Times. This article summarizes publicly available elements, market data, and industry research.

Amazon is reportedly in advanced negotiations to acquire the satellite telecommunications provider Globalstar in a deal valued at approximately $9 billion. The potential acquisition, first reported by the Financial Times on April 1, 2026, marks a significant escalation in the ongoing space race between major technology and aerospace firms.

The move is widely seen as a strategic effort by Amazon to accelerate the deployment of its low-Earth orbit (LEO) satellite internet network, recently rebranded as Amazon Leo. By acquiring Globalstar, Amazon would gain immediate access to critical infrastructure and highly coveted spectrum licenses, potentially narrowing the operational gap with industry leader SpaceX.

However, the transaction faces a unique and complex hurdle: Apple. The iPhone manufacturer holds a 20% equity stake in Globalstar and relies heavily on its network for critical safety features, setting the stage for a rare negotiation dynamic between two of the world’s largest consumer technology rivals.

Amazon is in talks to acquire satellite telecommunications group Globalstar, the Financial Times reported on Wednesday, citing people familiar with the matter.

As noted in the Reuters summary of the FT report, these discussions remain ongoing and hinge on several complex regulatory and corporate factors.

The Strategic Rationale for Amazon

Closing the Competitor Gap

Amazon is currently working to establish its satellite internet presence, but it trails significantly behind SpaceX’s Starlink. According to industry research, Starlink currently dominates the sector with over 10,000 satellites in orbit and serves more than 10 million subscribers. In contrast, Amazon Leo, formerly known as Project Kuiper before its November 2025 rebranding, currently operates an estimated 200 to 212 satellites.

Regulatory pressures are also mounting on the e-commerce giant. Amazon faces a strict Federal Communications Commission (FCC) mandate to deploy half of its planned 3,232-satellite constellation by mid-2026. While the company recently requested a two-year extension from regulators, the urgency to scale its orbital operations remains high.

Spectrum and Commercial Expansion

Acquiring Globalstar would provide Amazon with an immediate, functional operational foundation. Industry analysts note that the true prize of the $9 billion valuation is not necessarily Globalstar’s existing 24-satellite LEO constellation, but rather its globally harmonized L-band and S-band spectrum licenses. These finite radio frequencies are notoriously difficult to secure and are essential for global telecommunications.

Furthermore, Amazon is already securing major commercial clients for its nascent network. On March 31, 2026, the company announced a partnership to provide satellite-powered Wi-Fi for 500 Delta Airlines aircraft, with services scheduled to begin in 2028. Globalstar’s existing network of 24 global ground station gateways could prove instrumental in supporting these upcoming commercial obligations.

Financials and the Apple Complication

Globalstar’s Market Position

Globalstar has established itself as a veteran in the satellite telecommunications sector, providing voice, data, and asset-tracking services. Financial data indicates the company reached profitability in 2025, recording $273 million in revenue. Following the initial reports of Amazon’s acquisition talks, Globalstar’s stock (NASDAQ: GSAT) surged by 24% in after-hours trading, pushing its market capitalization toward the reported $9 billion deal value.

The Apple Factor

The most significant complication in the proposed acquisition is Apple’s deep integration with Globalstar’s infrastructure. In late 2024, Apple invested $1.5 billion into the satellite operator, securing a 20% equity stake.

Currently, Globalstar reserves 85% of its network capacity exclusively for Apple. This dedicated capacity powers the “Emergency SOS via Satellite” and messaging features available on the iPhone 14 and subsequent models. Financial reports show that this wholesale capacity segment generated $46.29 million for Globalstar in the first quarter of fiscal year 2026 alone.

As a major shareholder, Apple effectively holds veto power over a total sale of the company. Reports suggest that Amazon is engaged in parallel negotiations with Apple to either buy out its stake or establish guarantees for the continuity of iPhone satellite services under Amazon’s ownership.

AirPro News analysis

We view this potential acquisition as a defining moment in the commercialization of low-Earth orbit. Amazon’s willingness to spend $9 billion on Globalstar underscores the immense capital required to compete in the satellite internet sector. It also highlights a broader trend of major technology companies vertically integrating their infrastructure, moving beyond terrestrial data centers to own the physical, space-based backbone of the global digital economy.

The dynamic between Amazon and Apple in this deal is particularly noteworthy. Amazon is attempting to purchase a strategic asset to compete with Elon Musk’s SpaceX, but to execute the deal, it must negotiate terms with Tim Cook’s Apple. How these three tech titans navigate this intersection of interests will likely set precedents for future infrastructure acquisitions in the aerospace and telecommunications sectors.

Frequently Asked Questions

What is Amazon Leo?

Amazon Leo is the new name for Amazon’s low-Earth orbit satellite internet network, formerly known as Project Kuiper. The company officially rebranded the initiative in November 2025.

Why does Apple own a stake in Globalstar?

Apple invested $1.5 billion in Globalstar in late 2024 to secure dedicated network capacity. This infrastructure powers the satellite-based safety and messaging features built into modern iPhones.

How many satellites does SpaceX have compared to Amazon?

According to recent industry data, SpaceX’s Starlink operates over 10,000 satellites, while Amazon Leo currently has approximately 200 to 212 satellites in orbit.

Sources: Reuters, Financial Times, AirPro News Industry Research