Nandini Roy Choudhury, writer
In brief
- Globalstar’s stock surged over 15% following reports of Amazon’s interest in acquiring the satellite communications provider, with discussions focusing on merger details.
- Amazon’s potential collaboration with Globalstar could enhance its new internet service from space, as the company aims to deploy around 7,700 satellites, despite delays in its launch schedule.
- Competing with SpaceX’s Starlink, which has a significant subscriber base and satellite presence, Globalstar had previously considered selling and met with SpaceX last year.
Detailed news
Globalstar stock rose more than 15% late on Wednesday after the Financial Times said that Amazon is in talks to buy the satellite communications provider. The paper cited persons who know about the subject.
The Times stated that the companies were deliberating about the structural aspect of the merger after a lengthy period. Things get more extraneous variables when Apple bought 20% of Globalstar in 2024 as part of a $1.5 billion arrangement to make the company’s ground and satellite infrastructure better.
Amazon wouldn’t say anything. When Globalstar was requested for feedback, they didn’t respond right away.
Amazon Leo is a new service that enables you connect to the internet from space. A collaboration with Globalstar could help it. Amazon had launched roughly 200 satellites into low Earth orbit by April of this year. Later this year, the business aims to initiate charging for its services.
The corporation aims to set up around 7,700 satellites deployment in space, but it has had to rescheduled its plans to do so. Amazon requested the Federal Communications Commission for more time on January 1 to achieve in a compressed timeline that says it needs to launch nearly 1,600 satellites by July 2026.
Starlink from SpaceX has considerable edge than Amazon’s proposal. It has about 9 million subscribers and more than 10,000 satellites in space.
Bloomberg said in October of last year that Globalstar was thinking about selling and had an early meeting with SpaceX, which is owned by Elon Musk.
Source : Financial Times , CNBC, Bloomberg
