Shares of Globalstar Inc (NASDAQ:GSAT) surged after reports that Amazon (NASDAQ:AMZN) is in advanced negotiations to acquire the satellite operator, as part of efforts to compete with SpaceX’s Starlink network.
According to Bloomberg, which cited sources familiar with the matter, a deal could be announced as early as Tuesday.
Globalstar stock jumped 15.7% in premarket trading by 04:31 ET following the report.
The update builds on earlier coverage from Financial Times, which indicated that Amazon was nearing an agreement for Globalstar as it looks to expand its low Earth orbit satellite capabilities and take on Starlink more directly.
One of the key challenges in completing the transaction is Apple’s (NASDAQ:AAPL) roughly 20% stake in Globalstar, meaning Amazon would need to engage with the iPhone maker as part of the process. Apple invested $1.5 billion in Globalstar in 2024.
Globalstar shares have rallied around 273% over the past year, reflecting growing investor interest in the company’s potential role as a competitor in the satellite broadband market.
Amazon has been steadily developing its own satellite initiative, known as Leo, but currently operates roughly 180 satellites—far fewer than the more than 10,000 satellites deployed by SpaceX.