Amazon in Talks to Acquire Globalstar
Shares of Globalstar (NASDAQ: GSAT) surged on Thursday after reports emerged that Amazon (NASDAQ: AMZN) is contemplating an acquisition of the satellite communication company. The Financial Times indicated that while discussions are underway, a deal may become complicated due to Apple‘s 20% stake in Globalstar, which could pose challenges.
Amazon is advancing its Project Kuiper, a multi-billion-dollar initiative to launch thousands of satellites, having already deployed about 200. This project aims to develop satellite-based internet services to compete with SpaceX’s Starlink, which currently operates over 10,000 satellites and serves 9 million customers. Globalstar’s market capitalization is roughly $10 billion, making the acquisition costly.
