Summary
- Reports said Amazon is pursuing the acquisition of Globalstar, seeking to compete with Starlink by expanding Leo.
- The report said Apple could be a key variable in the talks, given its 20% stake in Globalstar, $1.5 billion investment, and provision of an iPhone satellite text-messaging service.
- After the acquisition report, Globalstar shares surged 15.36% in after-hours Nasdaq trading, and have jumped 230% over the past year.
Forecast Trend Report by Period
Globalstar surges 15% in after-hours Nasdaq trading
Set for a head-on clash with SpaceX’s satellite internet service Starlink
Apple emerges as a wild card…holds a 20% stake in Globalstar
Amazon is pursuing the acquisition of U.S. satellite communications company Globalstar, the Financial Times (FT) reported on the 1st (local time). The move is seen as an attempt to compete with “Starlink,” the satellite internet business of Elon Musk’s space company SpaceX.
According to the FT, Amazon is in acquisition talks with Globalstar to expand its own low-Earth-orbit (LEO) satellite internet business “Leo” in a bid to take on SpaceX. Details are said to be complex, and nothing has been decided yet.
In particular, anonymous sources said Apple’s 20% stake in Globalstar is being cited as a major variable. Apple invested $1.5 billion in Globalstar in 2024 to buy a 20% stake and is providing an iPhone satellite text-messaging service in areas without coverage.
The FT said Globalstar, Amazon and Apple did not respond to questions about the acquisition talks.
After reports of Amazon’s possible Globalstar acquisition, Globalstar shares surged 15.36% in after-hours Nasdaq trading to $79.06.
Globalstar was founded in Louisiana in 1991. As of the end of last year, the company had 800,000 subscribers to its mobile satellite communications service. Its shares have jumped 230% over the past year.
If Amazon’s acquisition of Globalstar goes through, commercialization of Amazon Leo is expected to accelerate. Amazon has been preparing for a formal launch of its LEO satellite internet service by the end of this year, having begun launching about 200 satellites since April last year.
Amazon plans to launch about 7,700 satellites this year and use them for service operations. However, delays in satellite deployment are causing setbacks.
SpaceX’s Starlink is currently the dominant leader in the satellite internet market. It has about 10,000 LEO communications satellites, with users numbering 9 million.
The FT reported that “if Amazon succeeds in acquiring Globalstar, e-commerce companies may increasingly move to strengthen their LEO satellite businesses themselves in the future.”
Reporter Lee Mi-a mia@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
