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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Minyoung] Amazon is reportedly in discussions to acquire U.S. satellite communications firm Globalstar, in a move seen as an effort to compete with SpaceX’s satellite internet service, Starlink.
According to a report by Financial Times on April 1 (local time), Amazon is negotiating a potential acquisition of Globalstar to expand its own low-Earth orbit (LEO) satellite internet initiative, often referred to as “Project Kuiper.” However, the discussions remain complex and no final decision has been made.
A key variable in the deal is Apple, which holds a 20% stake in Globalstar. Apple invested $1.5 billion in 2024 to secure the stake and currently uses Globalstar’s network to provide satellite-based messaging services for iPhones in areas without cellular coverage.
Globalstar, Amazon, and Apple all declined to comment on the reported talks, according to the Financial Times.
Following the news, Globalstar’s shares surged 15.36% in after-hours trading on the Nasdaq Composite, reaching $79.06.
Founded in 1991 in Louisiana, Globalstar had approximately 800,000 mobile satellite service subscribers as of the end of last year. Its stock price has risen more than 230% over the past year.
If the acquisition proceeds, it could accelerate the commercialization of Amazon’s satellite internet business. The company has been preparing for a full-scale LEO satellite service launch by the end of this year, having deployed more than 200 satellites since April last year, with plans to expand to around 7,700 satellites.
However, delays in satellite deployment have reportedly affected the timeline.
Meanwhile, SpaceX’s Starlink remains the dominant player in the satellite internet market, operating roughly 10,000 LEO satellites and serving approximately 9 million users worldwide.
알파경제 Kim Minyoung Reporter(kimmy@alphabiz.co.kr)
