Amazon Explores Acquisition of Globalstar
Amazon is reportedly in discussions to acquire satellite telecom company Globalstar, valued at $9 billion. This move comes as Amazon has faced challenges in launching its own satellite system, risking missing regulatory deadlines. If successful, the acquisition could significantly enhance Amazon’s satellite operations and provide competitive leverage in the growing space telecommunications market.
As of now, Globalstar operates 24 low Earth orbit (LEO) satellites, with plans to expand to 32. In contrast, Amazon has launched about 200 LEO satellites towards a planned fleet of 7,700, aiming to deliver broadband coverage worldwide by late 2026. However, delays due to rocket shortages and manufacturing issues have hindered progress, prompting Amazon to seek a deadline extension from the FCC.
Notably, Apple’s 2024 $1.5 billion investment in Globalstar, which includes a 20% equity stake and exclusive network capacity for its users, may complicate any potential acquisition discussions between Amazon and Globalstar.
