Khaberni - Amazon is in talks to acquire the satellite communications group "Globalstar", in a deal that would enhance the efforts of the e-commerce giant to build its own satellite project in low Earth orbit.
According to informed sources, the two parties are still negotiating some details of the complex deal after lengthy negotiations.
The sources noted that one of the complicating factors is Apple's ownership of a 20% stake in "Globalstar", which necessitated negotiations between Amazon and Apple, according to the Financial Times.
The acquisition of the satellite group would accelerate Amazon's efforts to compete with Elon Musk's "SpaceX" and its orbital internet service "Starlink".
The company value is $9 billion
The sources warned that no final agreement has been reached yet, and that the negotiations could change or collapse.
"Globalstar" stated: "As part of its policy, Globalstar does not comment on speculation or rumors in this sector".
Globalstar shares, which were established in 1991, have seen a significant rise in recent months fueled by acquisition speculation, bringing its market value to about $9 billion on Wednesday.
Its stock has risen about 230% over the past year, as investors bet on its ability to compete with SpaceX.
Globalstar has attracted the attention of several other companies looking to build their own systems of low-Earth orbit satellites, with Starlink being the most prominent player.
Apple invested $1.5 billion in Globalstar in 2024, acquiring a 20% stake in the company.
As part of the agreement, Globalstar agreed to allocate 85% of its network capacity to Apple, the iPhone maker, for text messaging services via satellites in areas not covered by cellular towers.
According to a previous Bloomberg report, Globalstar was considering selling, and had initial talks with SpaceX.
Amazon continues its efforts in its own project, named Leo, where it launched the first batch of satellites for its own internet system last year.
The company owns more than 180 satellites in orbit, but this number is small compared to more than 10,000 active satellites operated by SpaceX.
In February, Amazon had to request a two-year extension from the Federal Communications Commission to launch 1,600 satellites, instead of the deadline set in July.
Amazon plans to launch about 700 satellites into space by the middle of this year, but it pointed out, according to official data, that a lack of launch capacity hinders the development of its services.
Amazon has signed agreements with JetBlue and Delta to provide Internet services onboard their flights starting from 2027 and 2028, respectively.
Andy Jassy, CEO of Amazon, told investors in February that the Leo system is part of a group of "additional opportunities" that the $2.2 trillion e-commerce group will pursue.
In its latest annual results, Globalstar announced annual revenues of $273 million, an increase of 9% from 2024.
Its operating profits amounted to $7.4 million in 2025, after a slight loss the previous year.
