By Adam Clark
Globalstar stock was jumping on Tuesday following a report that Amazon.com is nearing a deal for the satellite company.
Amazon could announced a deal to acquire Globalstar -- valued at about $9.37 billion as of Monday's close -- as soon as Tuesday, Bloomberg reported, citing people familiar with the matter.
Globalstar and Amazon didn't immediately respond to requests for comment. News of a potential deal first emerged earlier this month.
Globalstar shares were up 14% in premarket trading. Amazon was down 0.7%.
The satellite maker's stock has more than tripled in value in the past 12 months, supercharged first by an agreement with Apple that included an up-to $1.5 billion investment by the iPhone maker and an expanded services agreement, and then by speculation over a potential sale of the company.
Apple's investment consisted of committing $1.1 billion in funding for new satellites and paying $400 million for a 20% interest in the entity that will operate Globalstar's new constellation. However, Apple was designated as a passive equity investor and didn't take any board seats.
Amazon plans to have a space-based Wi-Fi service that by the end of the decade -- if all goes to plan -- will have more than 3,000 satellites offering data services to Amazon Web Services clients and others. It renamed the initiative Amazon Leo from Project Kuiper last year and has launched its first satellites.
Write to Adam Clark at adam.clark@barrons.com
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April 14, 2026 06:32 ET (10:32 GMT)
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