Amazon in talks to buy $9bn satellite telecoms group: report

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WASHINGTON DC: Amazon is in advanced negotiations to acquire the satellite telecommunications company Globalstar in a deal valued at approximately $9 billion, according to an industry report. 

The move is seen as a strategic ‘shortcut’ for Amazon's low-earth-orbit satellite initiative that was recently rebranded as Amazon Leo, formerly called Project Kuiper. This development comes at a time when the company is racing to compete with Elon Musk’s dominant Starlink network.

If finalised, the acquisition would provide Amazon with immediate access to Globalstar’s coveted L-band and S-band spectrum licences, as well as an established network of over 20 ground stations. These assets are considered ‘finite and strategically valuable,’ as they cannot be replicated simply by launching more hardware.

However, the deal faces a significant hurdle: Apple Inc. currently holds a 20% stake in Globalstar following a $1.5 billion investment in 2024 to power its iPhone ‘Emergency SOS’ feature. Analysts suggest Amazon must navigate complex negotiations with Apple to ensure strategic alignment before the buyout can proceed.

Photo Credits: AFP