Satellite internet: Amazon negotiates Globalstar takeover

Amazon could expand its position in the satellite market through a multi-billion dollar acquisition. According to the Financial Times, talks are currently underway about taking over Globalstar. After lengthy negotiations, complex aspects of a possible deal are still being worked out. An agreement has not yet been reached, and the talks could still develop or fail, reports the business newspaper, citing people familiar with the matter.

According to sources, one obstacle in the talks is Apple's 20 percent stake in Globalstar, as it requires additional negotiations between Amazon and Apple. At the end of 2024, Apple invested a total of 1.5 billion US dollars in the company. The majority of the sum was paid in advance for the expansion of a new satellite infrastructure. At the same time, Apple secured access to about 85 percent of the network capacity, which is primarily used for satellite-based iPhone functions.

Back in October, Bloomberg reported that Globalstar was considering a sale and had held initial talks with potential interested parties, including SpaceX. The ongoing speculation is reflected in the share price development: the company's stock has steadily increased lately, reaching a market capitalization of nearly 9 billion US dollars on Wednesday.

Globalstar: Small provider in a growing market

Globalstar is a US satellite communications provider with its network of low-earth orbit satellites. The company offers telephony and data services, serving private customers as well as businesses and government agencies. With around 50 satellites, Globalstar is one of the smaller providers compared to Starlink. In 2025, the company achieved a revenue of 273 million US dollars.

The market for satellite internet is growing as companies and governments want to make their connectivity more independent and robust. LEO satellites (Low Earth Orbit) are considered an important technology because they enable lower latency than traditional geostationary systems. Starlink has further fueled interest in such networks and shown that they can be scaled up significantly. The market leader now has around 10,000 satellites in orbit and, according to its own figures, has around 10 million active customers worldwide. According to Reuters, 50 to 80 percent of SpaceX's revenue now comes from Starlink.

Amazon is simultaneously building its own satellite network under the name Leo (formerly “Project Kuiper”). So far, just over 180 satellites are in orbit, and by mid-year, Amazon aims to increase the number to around 700. In the long term, a significantly larger constellation of around 3,200 satellites is planned.

(mack)