Amazon Reportedly in Advanced Talks to Acquire Satellite Firm Globalstar
In a significant move to bolster its presence in the satellite telecommunications sector, Amazon is currently engaged in discussions to acquire Globalstar, a prominent satellite group. This potential deal is poised to accelerate Amazon's ambitious efforts to establish its own low Earth orbit (LEO) satellite business, directly challenging competitors like SpaceX.
Negotiations Underway with Apple as a Complicating Factor
According to sources familiar with the matter, as reported by The Financial Times, the negotiations between Amazon and Globalstar are ongoing but face complexities, primarily due to Apple's involvement. Apple holds a substantial 20% stake in Globalstar, following a $1.5 billion investment made in 2024. This ownership necessitates direct talks between Amazon and Apple to navigate the deal's intricacies.
As part of Apple's agreement with Globalstar, the satellite company reserved 85% of its network capacity for the iPhone maker, enabling satellite-based texting features introduced with the iPhone 14 in 2022. This technology allows users to contact emergency responders or others when outside cellular coverage areas, adding a layer of strategic importance to the negotiations.
Globalstar has maintained a policy of not commenting on industry speculation or rumors, stating, "As a company policy, Globalstar does not comment on industry speculation or rumours." Meanwhile, Bloomberg previously reported in October that Globalstar was exploring a sale and had held preliminary talks with SpaceX, indicating a competitive landscape.
Strategic Implications for Amazon's Satellite Internet Push
If finalized, the acquisition of Globalstar would significantly enhance Amazon's capabilities in the satellite internet market. Amazon has been actively developing its own LEO satellite constellation, dubbed Leo, with over 180 satellites already in orbit. However, this number pales in comparison to SpaceX's Starlink, which operates more than 10,000 active satellites.
By acquiring Globalstar, Amazon could leverage the company's existing active service for satellite internet on phones. This move would allow Amazon to quickly tap into valuable spectrum resources, potentially accelerating the development of its own 5G and satellite-to-device (D2D) communication capabilities. Such advancements would position Amazon more competitively against Elon Musk's SpaceX and its widely used Starlink orbital internet service.
The deal underscores Amazon's strategic focus on expanding its technological footprint beyond e-commerce, venturing into critical infrastructure sectors like telecommunications. As discussions continue, the outcome could reshape the dynamics of the global satellite internet industry, with major players vying for dominance in this high-stakes arena.
