Reports suggest that Amazon is pursuing a significant acquisition of Globalstar, a strategic move poised to bolster its low-Earth-orbit (LEO) satellite internet infrastructure. This potential deal underscores Amazon's ambition to accelerate its presence in the rapidly evolving satellite communications sector, directly challenging competitors like SpaceX's Starlink. The intricate nature of the negotiations is further complicated by Apple's substantial prior investment in Globalstar, signaling the strategic importance of this company in the broader technological landscape. The market has reacted positively to these developments, with Globalstar's shares experiencing a notable surge.

Amazon Eyes Globalstar for Satellite Internet Expansion Amidst Industry Competition

In a significant development reported on April 1, 2026, sources familiar with the matter indicate that Amazon.com Inc. is engaged in discussions to acquire satellite communications provider Globalstar Inc. The news sent Globalstar's stock soaring by over 15% in after-hours trading on Wednesday. This strategic maneuver by Amazon aims to strengthen its low-Earth-orbit satellite internet initiative, known as Project Kuiper, as the e-commerce giant pushes towards commercial service. Amazon has already deployed more than 200 satellites since April 2025 and is actively seeking an extension from the FCC to meet its mid-2026 deadline for launching approximately 1,600 satellites.

This pursuit positions Amazon in direct competition with Elon Musk's SpaceX, whose Starlink network currently holds a considerable lead in both satellite count and user base. Interestingly, Globalstar already has existing launch agreements with SpaceX for its replacement satellites and the development of its third-generation network, illustrating a complex web of alliances within the space industry. A Bloomberg report from October 2025 previously hinted at Globalstar exploring a potential sale and having early discussions with SpaceX.

A critical factor in the ongoing negotiations between Amazon and Globalstar is Apple Inc.'s 20% ownership stake in Globalstar. Apple acquired this stake in 2024 through a $1.5 billion investment, aimed at expanding Globalstar's satellite constellation and ground infrastructure to support satellite-based features for its iPhone devices.

Looking ahead, Globalstar's next key financial event is its anticipated earnings report around May 7. Analysts predict a narrowing of losses to 1 cent per share from 16 cents a year prior, alongside an expected revenue increase to $70.59 million from $60.03 million. This forecast suggests robust top-line growth, even as profitability remains a focus. Following the news of Amazon's interest, Globalstar shares rose 3.18% to $68.53 during regular trading and then surged an additional 15.36% to $79.06 in after-hours trading.

The potential acquisition of Globalstar by Amazon represents a pivotal moment in the burgeoning satellite internet market. This move highlights the intense competition among tech giants to dominate this frontier, offering new avenues for connectivity. For consumers, increased competition could lead to more affordable and accessible satellite internet services globally. For investors, it underscores the strategic value of satellite communication companies and the significant capital being poured into space technology. The intricate dance between established players like Apple, Amazon, and SpaceX also illustrates how collaborations and rivalries will shape the future of global connectivity, demanding keen observation of evolving market dynamics and regulatory landscapes.