Elon Musk vs Jeff Bezos: Amazon Nears Globalstar Deal to Rival Starlink

Amazon is in advanced discussions to acquire Globalstar, a leading satellite communications operator, in a move that would dramatically accelerate the tech giant's ambitions in the rapidly growing satellite internet industry, Bloomberg reported.

An announcement could come as early as Tuesday, April 14, though a final agreement has not yet been reached and talks could still collapse or be delayed.

Globalstar's shares have surged nearly fourfold over the past year, valuing the company at approximately $9.4 billion, a figure that reflects growing investor appetite for satellite broadband infrastructure as demand for connectivity in remote and underserved regions continues to rise.

Amazon's Satellite Ambitions

Amazon is currently developing its own satellite internet network, known as Leo, previously referred to as Project Kuiper, which envisions a constellation of 3,200 low-earth-orbit (LEO) satellites. To date, only 180 of those satellites have been placed in orbit. Acquiring Globalstar would offer Amazon something that money alone cannot quickly buy. Amzon will have an established network of LEO satellites and an existing customer base and years of operational expertise.

Globalstar operates a fleet of low-earth-orbit satellites capable of delivering faster and more reliable communication than conventional satellites. Its portfolio spans voice calls, data services and asset-tracking solutions, catering to businesses, governments and individual consumers worldwide. These assets would complement Amazon's broader connectivity strategy.

Apple Adds Complexity to Potential Deal

The negotiations are not without complications. According to an earlier report by the Financial Times, discussions between Amazon and Globalstar have been ongoing for some time, with no guarantee of a final outcome.

A particularly notable hurdle is Apple's 20% stake in Globalstar, which means Amazon would need to negotiate separately with the iPhone maker as part of any comprehensive agreement.

Amazon vs Musk

A successful acquisition would sharpen what is emerging as one of the defining corporate rivalries in the technology sector. Elon Musk's SpaceX, through its Starlink satellite internet division, has already established a commanding lead in the space, boasting more than 10 million active customers and approximately 10,000 satellites in orbit. Starlink is expected to generate over $9 billion in revenue this year, underscoring the enormous commercial potential of satellite broadband, according to the report.

The competitive stakes are rising further still. SpaceX has confidentially submitted documents for a US initial public offering (IPO) that could become the largest stock market listing in history. The filing is part of an internally planned process codenamed Project Apex, with the listing expected to take place as early as June, according to earlier reports. The company is said to be targeting a listing as early as June, with ambitions to raise more than $50 billion. This figure would surpass the $29.4 billion raised by Saudi Aramco in 2019, which currently holds the record for the world's largest IPO.

Notably, Globalstar had reportedly been exploring a sale to multiple prospective buyers since at least October of last year. SpaceX was also said to have held discussions with the company, according to an earlier Bloomberg report.