Amazon is reportedly negotiating a $9 billion deal to buy satellite operator Globalstar, aiming to challenge SpaceX’s Starlink in the space internet race.
WASHINGTON: Amazon is in advanced talks to acquire US satellite telecommunications group Globalstar in a deal valued at approximately $9 billion.
The Financial Times reported the negotiations, citing people familiar with the matter, as Amazon seeks to bolster its rival network to Elon Musk’s Starlink service.
Discussions are ongoing and no final agreement has been reached, with the potential for talks to still collapse. One complicating factor is Apple’s 20% stake in Globalstar, requiring separate negotiations between Amazon and the iPhone maker.
Amazon, founded by billionaire Jeff Bezos, is building its own competing satellite internet constellation called Project Kuiper. That network currently has more than 200 satellites in orbit.
Globalstar operates its own smaller low Earth orbit satellite constellation. Its share price has surged nearly 230% over the past year amid speculation about a potential sale.
The reported talks follow SpaceX’s confidential filing for an initial public offering that could value the company at $75 billion or more. Starlink operates over 10,000 satellites providing global connectivity.
Globalstar told the Financial Times it “does not comment on industry speculation or rumours.” Amazon declined to comment on the report.
AFP has contacted Amazon, Globalstar and Apple for comment.