Globalstar stock jumps 15% amid Amazon acquisition rumours

The stock of Globalstar saw an increase of over 15% in after-hours trading on Wednesday as the Financial Times disclosed that Amazon is engaged in discussions to purchase the satellite communications firm, based on information from insiders.

The Financial Times noted that the discussions involved navigating some complex issues stemming from extended negotiations. 

A complicating factor is that Apple acquired a 20% interest in Globalstar in 2024, as reported by FT, through a $1.5 billion investment to enhance the company's satellite network and facilities on the ground.

A potential acquisition of Globalstar could strengthen Amazon Leo, Amazon's emerging space-based internet service.

As of last April, Amazon had successfully deployed about 200 satellites in low Earth orbit, planning to commence its commercial service within the year.

The company's goal is to launch an array of about 7,700 satellites, although it has faced postponements in hitting its satellite deployment targets.

In January, Amazon requested an extension from the Federal Communications Commission for meeting a deadline requiring the launch of approximately 1,600 satellites by July 2026.

Amazon is gearing up to compete with SpaceX's Starlink, which already boasts over 10,000 satellites in orbit and a user base exceeding 9 million.

Bloomberg revealed last October that Globalstar was weighing potential sale options and had preliminary talks with Elon Musk's SpaceX.