Amazon in Discussions to Acquire Globalstar Satellite Group for $9 Billion

Amazon Pursues Acquisition of Globalstar in Bid to Expand Satellite Business

Amazon is in talks to acquire Globalstar, a satellite telecom group, as the tech giant continues to build its low-earth-orbit satellite business. According to a report by the Financial Times, citing people familiar with the matter, Amazon is negotiating the complexities of a deal after lengthy talks with Globalstar.

Globalstar's shares have seen a significant increase in market value over the past year, rising 24% to $85 in extended trading. The company's market capitalization stands at $8.81 billion, as of the last close. Headquartered in Covington, Louisiana, Globalstar specializes in low-earth-orbit satellites, offering voice, data, and asset-tracking services across enterprise, government, and consumer markets.

One potential complicating factor in the negotiations is Apple's ownership of a 20% stake in Globalstar. As a result, Amazon will need to engage in negotiations with Apple, in addition to Globalstar. The exact terms and conditions of the potential deal remain unclear at this time.

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Globalstar has been exploring a potential sale, with early discussions held with Elon Musk's SpaceX among other prospective buyers. The company did not respond to Reuters' request for comment, while Amazon declined to comment on the matter.