Globalstar stock surges 15% on report Amazon is weighing an acquisition

Shares of Globalstar experienced a remarkable surge of over 15% in after-hours trading on Wednesday, driven by a report from the Financial Times indicating that Amazon is considering acquiring the satellite communications company. Sources familiar with the situation revealed that negotiations are still underway as both parties work through the complexities involved in the potential deal. One key issue complicating the talks is Apple's significant investment in Globalstar. In 2024, Apple acquired a 20% stake in the company, contributing to a $1.5 billion investment aimed at enhancing Globalstar's satellite constellation and ground infrastructure. As discussions continue, Amazon has refrained from commenting, and Globalstar representatives were not immediately available for feedback. Acquiring Globalstar could significantly enhance Amazon's ambitions for its internet-from-space initiative, known as Amazon Leo. The tech giant has already launched approximately 200 satellites into low Earth orbit since April of the previous year and plans to commence commercial services later this year. Amazon's goal is to establish a massive constellation of around 7,700 satellites, although it has encountered delays in meeting its satellite deployment timelines. Earlier this year, Amazon sought an extension from the Federal Communications Commission, requesting more time to fulfill a deadline that mandates the launch of about 1,600 satellites by July 2026. This strategic move positions Amazon to challenge SpaceX's Starlink, which has a substantial lead with over 10,000 satellites in orbit and a user base exceeding 9 million. Additionally, Bloomberg reported last October that Globalstar had been contemplating a sale and had preliminary discussions with Elon Musk's SpaceX.