Shares of Globalstar (GSAT) are up 15% on reports that technology giant Amazon (AMZN) is considering acquiring the satellite communications company.
Media reports say that the two companies are negotiating and have been engaged in lengthy talks about a potential acquisition.
Globalstar operates a satellite constellation in low Earth orbit for phone, low-speed data transmission, and Earth observation – areas that Amazon is keen to enter.
However, a complicating factor in any acquisition is that Amazon rival Apple (AAPL) has a 20% stake in Globalstar. Resolving the Apple stake will be key to any deal, say media reports.
Purchasing Globalstar could bolster Amazon Leo, the company’s internet-from-space service.
Amazon has launched about 200 satellites into low Earth orbit since 2025, and it’s aiming to roll out commercial internet service from outer space later this year.
Management at Amazon have said that they have a long-term goal to build a constellation of 7,700 satellites in space.
Amazon aims to compete with SpaceX’s Starlink satellite internet business, which has a significant head start with more than 10,000 satellites in orbit and over nine million customers.
Globalstar said last year that it was putting itself up for sale, and it previously held discussions about an acquisition with SpaceX.
Prior to today (April 2), GSAT stock had risen 229% over the last 12 months to trade at $68.53 U.S. per share.
