Reports emerged last Friday that e-commerce and cloud computing leader Amazon.com is in discussions to acquire satellite communications operator Globalstar, aiming to significantly boost its commercial internet satellite business and compete head-to-head with Elon Musk's SpaceX in the space sector. Following the news, Globalstar's stock surged more than 20% on Friday. Investors should note that while the potential acquisition itself is notable, a major variable with a current market capitalization of approximately $3.8 trillion must be considered: Apple, the U.S. consumer electronics leader behind the iPhone and iPad. The iPhone maker holds about 20% of Globalstar's shares, meaning any acquisition would require exclusive negotiations with Apple. Media reports indicate that after prolonged talks, parties involved are still working through complex issues related to the potential deal.
Acquiring Globalstar is a crucial foundation for Amazon's ambitions to challenge SpaceX in commercial space. Globalstar is not merely a typical satellite internet provider but a mobile satellite services operator: it runs low-Earth orbit satellites and global ground gateways, offering voice, data, asset tracking, and IoT services to retail, corporate, and government clients. It also holds valuable spectrum assets, including Band 53/n53 in the U.S. and terrestrial spectrum rights in multiple countries. Essentially, Globalstar sells not just a satellite system but an entire infrastructure package: satellite network, ground gateways, spectrum licenses, and industry applications.
Amazon's urgency to acquire the satellite operator stems not from Globalstar's size but from the years of development it would save. Amazon is negotiating a roughly $9 billion purchase to accelerate its low-Earth orbit satellite business and directly compete with SpaceX's Starlink service. For Amazon, the most valuable aspects are threefold: an existing satellite network and global infrastructure; scarce, commercially usable spectrum like Band 53/n53; and proven satellite capabilities validated by Apple, government, and enterprise customers. This would allow Amazon to acquire licenses, infrastructure, clients, and applications in one move, rather than building from scratch.
SpaceX's Starlink leads with over 9,500 satellites and more than 9 million users, while Amazon's Project Kuiper plans around 3,200 satellites but is still accelerating deployment amid FCC schedule pressures. Buying Globalstar would not immediately close the satellite gap but would quickly address Amazon's shortcomings in direct-to-device, private wireless, enterprise/government, and remote connectivity. Thus, Globalstar is vital to Amazon's space ambitions—a key piece of its aerospace strategy, though not a standalone solution to overtake Starlink. Its strategic value lies in upgrading Amazon from a satellite broadband focus to a hybrid platform combining broadband, direct device connectivity, and spectrum, elevating its position in the global space industry.
However, Apple remains a significant variable. SpaceX is considering a June IPO, potentially raising up to $50 billion, which could become the largest IPO ever, with a valuation possibly reaching $2 trillion, surpassing Tesla's current $1.3 trillion. The integration of Tesla, SpaceX, and xAI may form a "Musk super empire," leveraging advancements in space AI data centers, energy storage, AI, full self-driving, Robotaxi, and the Optimus humanoid robot. This creates a vertically integrated "super infrastructure" narrative combining AI, communications, space, energy, and robotics, which could boost SpaceX's IPO pricing and Tesla's valuation.
If Amazon acquires Globalstar, what would it mean for Apple? Apple previously invested $400 million in equity and $1.1 billion in infrastructure payments to Globalstar, helping build its satellite network. Apple uses Globalstar's satellites for emergency SOS on iPhone 14 and later models, and related Apple Watch features, allowing users to contact emergency services and share locations via cellular networks. The feature, launched in the U.S. and expanded globally, remains free for now, though Apple initially indicated future fees.
Should the Amazon-Globalstar deal proceed, Seeking Alpha analyst Julia Ostian expects Amazon to launch its own direct-to-device satellite service, possibly as a Prime subscription benefit or integrated with AWS or Alexa for remote connectivity. Leveraging its large customer base, Amazon could better compete with Starlink. Julian Lin of Best Of Breed Growth Stocks shares this view, anticipating Amazon may introduce smartphone services aligned with its goal to dominate consumer ecosystems, though it may complicate Globalstar-Apple relations.
Wedbush Securities analyst Michael Piccolo notes that Apple currently uses about 85% of Globalstar's satellite capacity, so any deal would require infrastructure-sharing agreements, potentially creating an "unusual dynamic partnership" between direct competitors. Analysts suggest this could strengthen cooperation between Apple and Amazon, who already have a long-term relationship: Apple sells devices directly on Amazon's site and uses AWS for services like iCloud, Siri, and Apple Maps. Ostian doubts Amazon would exclude Apple, expecting Globalstar to remain independent with Apple as a key shareholder and client.