Amazon reportedly in talks to buy satellite group Globalstar

Amazon is in talks to acquire satellite communications firm Globalstar, a report said, sending Globalstar shares up more than 15% in after-hours trading.

The parties are still negotiating details after lengthy discussions, and one issue is Apple’s 20% stake in Globalstar from 2024 as part of a US$1.5 billion investment to expand its constellation and ground infrastructure, the report said.

A deal could support Amazon’s Amazon Leo satellite internet effort, which has launched about 200 low Earth orbit satellites since last April and plans commercial service later this year.

Amazon has told US regulators it needs more time to meet a July 2026 deadline to launch about 1,600 satellites toward a planned 7,700-satellite constellation, while rival Starlink has more than 10,000 satellites and over 9 million users.

🔗 Source: CNBC

🧠 Food for thought

Implications, context, and why it matters.

Globalstar offers Amazon more than just satellites

An acquisition would hand Amazon licensed L-band and S-band spectrum, including Band 53. That spectrum supports terrestrial (ground-based) private 5G networks 1.
Globalstar also brings satellite capacity backed by a renewed 15-year blanket mobile earth terminal authorization from the U.S. Federal Communications Commission (FCC). The authorization covers a Globalstar affiliate, GUSA Licensee LLC (a Globalstar-related company that holds certain FCC approvals) 1.
Apple’s relationship with Globalstar goes beyond an equity stake. Contracts reserve about 85% of Globalstar’s network capacity for Apple 2.
In 2022, Apple agreed to pay most costs to replenish the constellation (the company’s fleet of satellites) for iPhone satellite services. A 2024 deal added a 20% equity stake plus funding to expand satellites and ground infrastructure 2.

The acquisition would intensify a tech giant showdown in space

Such a deal would place Amazon in the direct-to-device (D2D) market, which targets links to unmodified phones and other devices. Apple already taps Globalstar for iPhone satellite features 2.
SpaceX is seeking EchoStar’s spectrum licenses through a proposed transfer to strengthen direct-to-cell ambitions, which are satellite links that connect directly to standard mobile phones 3.
Greater tech ownership of satellite networks could push independent operators to the margins. Regulators would also face added pressure to finish rules for spectrum sharing plus competition in supplemental coverage from space 4.