Amazon is in talks to acquire satellite communications company Globalstar for $9 billion, according to reports from the Financial Times, marking the latest escalation in the billionaire space race between Jeff Bezos and Elon Musk.
If you're wondering why Amazon needs satellites, here's the short version: the company is playing catch-up in the race to beam internet from space. And it's paying a premium to do it.
Project Kuiper vs. Starlink
Amazon's satellite internet project, called Project Kuiper, has been approved for 3,200 satellites but only has 180 in orbit so far. Compare that to Musk's Starlink, which already has more than 9,500 satellites circling the planet and serves over nine million customers worldwide.
Starlink generates between 50% and 80% of SpaceX's revenue, depending on who you ask. For Amazon, Kuiper isn't just about selling internet service to consumers. It's also about securing contracts with businesses, governments, and U.S. national security agencies through its Starshield variant.
Globalstar, headquartered in Covington, Louisiana, operates a network of low-earth-orbit satellites and provides voice, data, and asset-tracking services. The company's market cap sat at $8.81 billion before the news broke. Its shares surged 24% to $85 in after-hours trading.
The Apple Complication
Here's where it gets interesting: Apple owns a 20% stake in Globalstar. That means Amazon and Apple now have to negotiate over this deal, adding a layer of complexity that could drag things out or blow it up entirely.
According to the FT, Amazon and Globalstar have been in "lengthy talks" and are still working through some of the finer points. That's Wall Street speak for "this could still fall apart."
What This Means for You
If the deal goes through, it accelerates Amazon's plans to compete directly with Starlink. For consumers, that's potentially good news: competition usually means better pricing and service. For investors, it's a reminder that Bezos isn't ceding space dominance to Musk without a fight.
But let's be clear: Amazon is still years behind. Even with Globalstar's existing network, Kuiper faces a massive execution challenge. Building, launching, and maintaining thousands of satellites isn't cheap, and it's not easy.
As of now, both Amazon and Globalstar have declined to comment. Apple hasn't said anything either. Until contracts are signed, this is just expensive talk.
