Globalstar's stock soared 16.31% in pre-market trading on Tuesday.

The significant price movement follows multiple reports that Amazon.com is in advanced discussions to acquire the satellite operator. According to Bloomberg News and other sources, Amazon is nearing a deal to buy Globalstar in a move that would bolster the tech giant's efforts to build its own satellite operation and compete with Elon Musk's SpaceX Starlink network.

A transaction could be announced as soon as Tuesday, though sources caution that a final agreement hasn't been reached and talks could still fall through. The potential acquisition would accelerate Amazon's progress in developing its Amazon Leo low Earth orbit satellite network, as Globalstar already operates a functioning satellite network that focuses on connecting phones and other devices in areas with weak coverage.