Globalstar’s stock is surging after Amazon was reported to be in talks to buy the satellite-communications company. But the e-commerce giant is not the only interested buyer.
Amazon is negotiating a deal to acquire Globalstar, the Financial Times reported on Wednesday, citing people familiar with the matter. However, the deal has been complicated by the fact that Apple owns a 20% stake in the $8.8 billion company, necessitating talks between Amazon and the iPhone maker, according to the report.
SpaceX, which owns the satellite-internet company Starlink, has also been in talks with Globalstar for months, according to The Information. Globalstar Chair James Monroe has discussed selling the company for more than $10 billion.
Acquiring Globalstar would likely help Amazon’s efforts to build out Amazon Leo, a program meant to compete with Starlink to provide high-speed, satellite-based internet access. Globalstar primarily uses its satellites to connect phones and other devices in areas where coverage is minimal.
Representatives for Globalstar, SpaceX and Apple didn’t immediately respond to a request for comment. Amazon declined to comment.
Globalstar shares rose 13.4% on Thursday. The stock has surged 273% over the last 12 months.
Tim Farrar, an analyst and the president of Telecom, Media and Finance Associates, said in a March 24 research note that as of January, Amazon was the most likely to buy Globalstar. However, he added that he thinks SpaceX “probably” has decided to beat Amazon’s offer to Globalstar to cement its dominance in the satellite industry.
By buying Globalstar, Farrar said, SpaceX would block a chance for Amazon to “broaden its appeal” and match Starlink’s direct-to-direct capability.
SpaceX has about 10,000 satellites in low-Earth orbit. It has at least 10 million global Starlink customers and is working with several partners to offer direct-to-cell coverage. Last fall, it agreed to buy $20 billion worth of spectrum from EchoStar, which could help SpaceX enhance Starlink’s service.
Meanwhile, Amazon has just a few hundred satellites deployed. The company has said it has dozens of commercial agreements, including with Delta Air Lines, with plans to roll out enterprise services later this year. However, it needs to launch a lot more satellites into orbit to rival Starlink.
To acquire Globalstar, either SpaceX and Amazon would likely need to find a way to appease Apple. Globalstar agreed to reserve 85% of its capacity for Apple’s satellite-based services as part of Apple’s $1.5 billion investment in the company.
“Would Apple continue to pay Starlink hundreds of millions of dollars per year to support connectivity on existing iPhones?” Farrar asked in his note, after noting that it’s unclear what selling Globalstar would mean for the iPhone maker.
If SpaceX were to acquire GlobalStar, it would mark the company’s second acquisition this year. In February, it acquired xAI, the startup created by SpaceX CEO Elon Musk to develop artificial intelligence, including the chatbot Grok.
SpaceX has only made a handful of other acquisitions since it was founded by Musk in the early 2000s. In 2021, it bought satellite-data startup Swarm Technologies. It also acquired parachute maker Pioneer Aerospace in 2023 and specialty RF filter firm Akoustis in 2025 after each of those companies filed for bankruptcy.
On Wednesday, SpaceX confidentially filed for an initial public offering. The company is expected to eye a listing as soon as this summer and to attempt to raise as much as $75 billion at a $1.75 trillion valuation.
Amazon has been more eager to acquire companies to help expand its empire, now worth $2.26 trillion. It bought grocery chain Whole Foods Market in 2017 to expand its physical footprint, the startup Zoox in 2020 to get a foothold in the growing market for autonomous vehicles, and MGM in 2021 to compete in the streaming space.