Summary:
Amazon is in talks to acquire Globalstar to expand into the low Earth orbit (LEO) satellite internet market and compete with SpaceX’s Starlink.
The deal is not finalized, and negotiations remain complex; Globalstar’s stock surged over 13% in after-hours trading following the news.
Apple holds a 20% stake in Globalstar and has rights to 85% of its network capacity for iPhone satellite messaging, creating a major structural hurdle for any acquisition.
Amazon’s satellite project (“Leo”) is significantly behind Starlink, with ~180 satellites in orbit vs. over 10,000 for Starlink, and has requested a 2-year FCC extension due to launch delays.
Acquiring Globalstar would provide Amazon with existing satellite infrastructure, spectrum, and operational capability, helping narrow the competitive gap.
Globalstar generated $273M revenue (+9% YoY) and $7.4M operating income in 2025, and has attracted interest from multiple parties, including prior discussions with SpaceX, highlighting its strategic value in satellite connectivity and aviation internet services.
Comment:
As I mentioned previously, https://contexta.biz/p/daily20260324, Amazon remains a unique presence within the Mag7, a company that consistently positions itself across multiple strategic frontiers rather than focusing on a single domain. Its ambition to “do everything” is not merely expansion for growth’s sake, but a deliberate attempt to build infrastructure layers across industries, from cloud computing to logistics, and now increasingly into space.
In the context of the space race, Amazon has often appeared as a relatively quiet player compared to the visibility of SpaceX or the ecosystem approach of Google. However, being quieter does not mean being less strategic. Through initiatives like its LEO satellite project and potential acquisition of Globalstar, Amazon is taking a more measured and asset-driven approach, aiming to accelerate its capabilities by leveraging existing infrastructure rather than building everything from scratch. This reflects a broader pattern in Amazon’s playbook—enter late, but scale fast with the right assets and partnerships.
Although Amazon is currently far behind SpaceX in terms of satellite deployment, its willingness to commit capital, secure regulatory flexibility, and explore acquisition opportunities signals that it is serious about closing the gap. In many ways, Amazon is positioning itself not just as a competitor, but as a long-term infrastructure provider in the satellite internet ecosystem, potentially integrating this capability with its broader cloud and enterprise services.
Overall, Amazon’s development in this space is worth watching closely. While the outcome remains uncertain, its strategic positioning and resource depth suggest that it could still play a meaningful role in shaping the next phase of the space-based internet landscape.
Disclaimer:
The above content reflects personal views and market discussion only. It does not constitute any investment advice or recommendation to buy or sell. Investing involves risk, and readers should make their own assessments and bear responsibility for their own decisions.