Globalstar Chairman and CEO Jay Monroe rings the opening bell at the New York Stock Exchange on April 21, 2014.
Brendan McDiarmid | Reuters
shares of global star Shares soared more than 15% in after-hours trading on Wednesday after the Financial Times report. Amazon is in talks to acquire a satellite communications company, according to people familiar with the matter.
The two companies are still negotiating some of the complexities of the deal after lengthy negotiations, the paper said. One complicating factor is apple The company acquired a 20% stake in Globalstar in 2024 as part of a $1.5 billion investment to strengthen its satellite fleet and ground infrastructure, according to the FT.
Amazon declined to comment. Representatives for Globalstar did not respond to requests for comment.
The deal with Globalstar could power Amazon Leo, the company’s nascent space-based internet service. Amazon has launched about 200 satellites into low orbit since April last year and aims to launch commercial services later this year.
The company plans to build a constellation of about 7,700 satellites, although it has faced delays in satellite deployment milestones. Amazon asked the Federal Communications Commission in January for more time to meet a deadline to launch about 1,600 satellites by July 2026.
Amazon is trying to compete with SpaceX’s Starlink, which has a significant head start with more than 10,000 satellites in orbit and more than 9 million users.
Bloomberg reported last October that Globalstar was considering a potential sale and had held early talks with Elon Musk’s SpaceX.
