Amazon is reportedly negotiating to acquire satellite operator Globalstar for $9 billion, aiming to compete with Elon Musk’s Starlink in the space internet race.
WASHINGTON: Amazon is in advanced talks to acquire US satellite telecommunications group Globalstar. The reported $9 billion deal aims to bolster Amazon’s challenge to Elon Musk’s Starlink service.
Citing sources, the Financial Times said the companies are finalising complex points of the acquisition. The talks are lengthy partly because Apple holds a 20% stake in Globalstar.
This requires separate negotiations between Amazon and Apple. No agreement has been finalised and discussions could still fall apart.
The move follows SpaceX’s confidential filing for a potential initial public offering. Media reports value a possible SpaceX IPO at $75 billion or more.
Starlink operates over 10,000 satellites providing ground connectivity. Amazon is building a rival network called Amazon Leo, with more than 200 satellites in orbit.
Globalstar owns a smaller low Earth orbit satellite constellation. Its market value is approximately $9 billion.
In October, Bloomberg reported Globalstar was exploring a sale with several potential buyers, including SpaceX. Globalstar’s share price has surged nearly 230% over the past year.
Globalstar told the Financial Times it “does not comment on industry speculation or rumours.” Amazon declined to respond to the report.
A source confirmed SpaceX’s confidential IPO filing on Wednesday. SpaceX did not respond to a request for comment.