Amazon (AMZN) is in talks to buy satellite communications firm Globalstar (GSAT) for about $9 billion to compete with Elon Musk’s SpaceX. The news, first reported by The Financial Times, sent GSAT shares up 15.3% in after-hours trading yesterday. The deal could accelerate commercialization of Amazon’s Leo satellite internet service (formerly Project Kuiper).
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Trade AMZN with leverageLeo has launched roughly 200 satellites into low Earth orbit (LEO) so far, with plans for a total of 6,600 by July 2026. Commercial service is slated to launch later this year. SpaceX’s Starlink leads the pack, boasting over 10,000 satellites, more than nine million users, and over half of SpaceX’s revenue.
How Globalstar Could Boost Leo
Amazon Leo targets a total of 7,700-satellite constellation, and Globalstar’s assets could speed that effort. Globalstar runs a LEO satellite network that provides phone calls, internet data, IoT devices, and tracking services worldwide. It ended 2025 with nearly 800,000 mobile satellite subscribers.
Its network covers over 80% of Earth’s surface for businesses, governments, and consumers. Globalstar’s key offerings include SPOT GPS trackers for emergencies and commercial IoT for monitoring assets in industries like oil, gas, and utilities. Last year, Bloomberg reported that Globalstar was exploring a sale and had early talks with Musk’s SpaceX and other buyers.
Key Hurdle: Apple’s Stake
The negotiations face a snag as iPhone maker Apple (AAPL) has a 20% stake in Globalstar. This was part of Apple’s $1.5 billion investment to expand iPhone satellite features and Globalstar’s infrastructure. Amazon must negotiate with Apple to close the deal.
Is Amazon Stock a Good Buy?
Analysts remain optimistic about Amazon’s long-term outlook. On TipRanks, AMZN has a Strong Buy consensus rating based on 42 Buys and three Hold ratings. The average Amazon price target of $284.30 implies 35% upside potential from current levels. Over the past year, AMZN shares have gained 8.8%.
