AMAZON is in talks to buy satellite telecom group Globalstar as it ramps up efforts to build its own low-earth-orbit satellite business to rival SpaceX's Starlink, the Financial Times reported on Wednesday, citing people familiar with the matter.
Globalstar's shares, which have more than doubled in market value over the past year, surged 24 percent to $85 in extended trading following the report. The company had a market cap of $8.81 billion as of last close.
Covington, Louisiana-headquartered Globalstar is known for its low-earth-orbit communication satellites and offers voice, data and asset-tracking services across enterprise, government and consumer markets.
Amazon and Globalstar were still negotiating some of the complexities of a potential deal after lengthy talks, according to the report.
One complicating factor has been Apple's ownership of a 20 percent stake in Globalstar, necessitating negotiations between Amazon and Apple, the report said.
Amazon's reported deal an effort to rival Starlink
The reported deal comes as Amazon deploys Leo, formerly known as Project Kuiper, involving 3,200 satellites.
Amazon's network would be the closest rival to Elon Musk's Starlink, which operates a network of more than 9,500 satellites.
Starlink services more than nine million users globally, and generates 50 percent-80 percent of SpaceX's revenue.
Its services span individual consumers, businesses and governments, including US national security agencies through its Starshield variant.
Amazon's Leo, with 180 satellites in orbit so far, is targeting similar customers.
Meanwhile, SpaceX has confidentially filed for a US initial public offering, two people familiar with the matter told Reuters earlier in the day, setting the stage for what could become the largest stock market listing on record.
Analysts estimate that much of SpaceX's potential $1.75 trillion potential valuation would be driven by its Starlink satellite business.