Amazon is considering purchasing satellite operator Globalstar

Amazon continues to look for ways to accelerate the launch of its satellite network

The Leo project, being developed by Amazon to create a “low‑orbit” constellation of communication satellites, is rolling out slower than the company expected. In search of alternative ways to strengthen its position in the promising sector, Amazon announced negotiations with operator Globalstar.

> *According to the Financial Times* — discussions are underway about a potential purchase of Globalstar shares. There is no official confirmation of the deal, amount or timeline yet.

The difficulty of the negotiations is compounded by the fact that in 2024 Apple owns 20 % of Globalstar’s shares. In exchange for an investment of $1.5 million, the company received the right to reserve up to 85 % of the network’s transmitting capacity for its customers, including the ability to send emergency messages via satellite even in regions without ground connectivity.

Current status and plans for Amazon

* Constellation: at present Amazon has 180 satellites.
* FCC approval: The U.S. Federal Communications Commission approved a launch of up to 1 600 satellites by July this year.
* Launch issue: the company can currently add only about 700 satellites, limited by frequency and the number of available rockets.

By 2027–2028 Amazon has already signed contracts with airlines JetBlue and Delta to provide in‑flight internet connectivity.

Globalstar overview

* Founded in 1991, one of the oldest satellite communication operators.
* Last year its share price rose 230 % after rumors of possible interest from SpaceX.
* Market capitalization is now $9 million; Amazon’s exact purchase price is not disclosed.
* Financials: In 2023 revenue was $273 million (up 9 %), operating profit $7.4 million, but in 2024 the company finished the year with losses.

After news of a potential Globalstar share purchase were published, its price rose about 15 %. The negotiations may end without a deal, but they already increase interest in Amazon’s project and open new opportunities for developing the satellite network.