Amazon is nearing a deal to acquire satellite operator Globalstar, expanding its satellite internet capabilities to compete with Elon Musk's Starlink.
Amazon.com Inc. is in advanced negotiations to purchase Globalstar Inc., according to sources familiar with the discussions. The acquisition would accelerate Amazon's satellite internet ambitions and establish a direct competitor to Starlink's growing network.
Globalstar operates a constellation of low-earth orbit satellites currently used for mobile communications and data services. The company has maintained its satellite network since its founding in 1994, though it has faced financial challenges and periods of restructuring.
Amazon has been developing Project Kuiper, an initiative to launch thousands of satellites for global broadband coverage. The Globalstar acquisition would provide immediate orbital infrastructure and spectrum rights, potentially shortening the timeline to operational service.
The deal represents Amazon's strategy to diversify beyond cloud computing and e-commerce into critical infrastructure. Satellite internet access addresses underserved markets with limited terrestrial broadband options, particularly in rural regions.
SpaceX's Starlink has rapidly scaled its satellite network to over 4,000 operational satellites, generating revenue from consumer subscriptions and enterprise contracts. Amazon's entry into the market escalates competition for satellite-based internet dominance.
The terms of Amazon's potential Globalstar deal have not been disclosed. Regulatory approval would likely be required given the deal's implications for U.S. spectrum and national infrastructure.
Globalstar's stock has historically traded at modest valuations compared to other space technology companies. The acquisition would validate the long-term commercial potential of satellite internet services.
Other tech companies including Apple and Google have explored satellite connectivity partnerships, though neither has pursued ownership of satellite operators at this scale. Amazon's potential move signals confidence in the market's viability and demand for alternative broadband infrastructure.
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