Satellite internet war escalates! Amazon plans to acquire Globalstar, directly challenging Musk's Starlink.

Amazon is seeking to accelerate its catch-up to Elon Musk’s Starlink in the low earth orbit satellite broadband market by acquiring satellite operator Globalstar. On April 14, Bloomberg reported that Amazon has entered deep negotiations to acquire Globalstar, with the deal potentially being announced as early as this Tuesday. After the news broke, Globalstar’s pre-market stock price soared by about 19%. The company’s market value has nearly quadrupled over the past year, now reaching around $9.4 billion. Globalstar was originally founded as a joint venture between Qualcomm and Loral Corp, and launched its first batch of low earth satellites in 1998. The company’s current CEO, Paul Jacobs, formerly led Qualcomm, whose father Irwin Jacobs was Qualcomm’s co-founder. By the end of 2025, Globalstar’s mobile satellite service subscribers will approach 800,000. This potential acquisition would inject Amazon’s low earth orbit satellite network project, Amazon Leo, with ready-made satellite infrastructure, though there are uncertainties as to whether the deal will ultimately go through. Chasing Starlink, Amazon seeks a breakthrough via acquisition Amazon is vigorously advancing its Amazon Leo project, planning to deploy over 7,700 satellites to directly compete with Starlink. However, Starlink currently has about 10,000 satellites in orbit and over 10 million active users, with projected revenue exceeding $9 billion this year, holding a significant advantage. Amazon is clearly lagging behind in satellite deployment progress. According to Bloomberg, Amazon has applied to the U.S. Federal Communications Commission (FCC) for a waiver or extension of the original July deadline to complete the launch of 1,600 satellites, citing insufficient rocket capacity as a reason. Bloomberg Intelligence analyst John Davies stated that acquiring Globalstar could help Amazon speed up its plans, since Globalstar already has an operational satellite network. He also pointed out that Globalstar’s network is far smaller than Starlink’s, with its business focused mainly on providing connectivity for mobile phones and other devices in low coverage areas. Apple holds about 20% stake, which may influence the deal's direction The close ties between Globalstar and Apple is an important variable in this potential transaction. In 2024, Apple invested about $1.5 billion in Globalstar, gaining approximately a 20% stake. Globalstar currently supports Apple iPhone’s emergency satellite calling functionality. According to sources cited by Bloomberg, Apple’s partnership with Globalstar grants the iPhone maker some say over Globalstar’s future direction. Bloomberg Intelligence analyst John Davies noted that Globalstar’s network expansion plans may be linked to Apple’s product roadmap, and Apple “would not wish to alter its existing plans.” Risk Warning and Disclaimer The market has risks; investments require caution. This article does not constitute personal investment advice, nor does it take into account the unique investment objectives, financial situations, or needs of individual users. Users should consider whether any opinions, perspectives, or conclusions in this article are suitable for their particular circumstances. Investment decisions made based on this are at your own risk.