Amazon Targets Globalstar to Challenge Starlink in a $9 Billion Deal

Amazon is reportedly in talks to acquire Globalstar, a major player in the satellite telecommunications sector, in a deal that could reach approximately $9 billion. The news, reported by the Financial Times, highlights a significant strategic move for the e-commerce giant, aiming to bolster its presence in space and directly compete with Starlink.

The acquisition would enable Amazon to accelerate the development of its low Earth orbit (LEO) satellite network, a sector increasingly central to global telecommunications. In this arena, Starlink, the project led by Elon Musk, has already gained a significant advantage, thanks to an operational constellation that is continuously expanding.

Globalstar, based in Covington, Louisiana, is known for its LEO satellite infrastructure and services it offers, including voice communications, data transmission, and asset tracking. The company serves clients in various sectors, including business, government, and consumer, making it a particularly attractive target for those looking to expand quickly in the market.

Apple holds a 20% stake in Globalstar: How will Amazon proceed? An element that complicates the negotiations is the 20% stake held by Apple in Globalstar. This implies that any agreements will necessarily involve the Cupertino company, adding an additional layer of complexity to the negotiations. Apple’s presence could influence both the final valuation and the terms of the deal.

It should also be noted that Amazon already possesses expertise in the space sector through Blue Origin, its aerospace division. Integration with Globalstar could therefore create significant synergies, allowing for a faster and more structured expansion of its satellite network.

This potential acquisition fits within a context of increasing competition for control of global communication infrastructure. LEO satellite networks are indeed considered crucial for ensuring connectivity in remote areas and supporting new technologies.