Globalstar stock surges 15% on report Amazon is weighing an acquisition

Globalstar’s stock popped on a report that Amazon is in talks to acquire the satellite communications corporation.

The companies were still negotiating over some of the complexities of a deal following lengthy talks, the Financial Times reported.

Amazon is building out a constellation of low Earth orbit satellites to support its internet-from-space service, called Leo.

Shares of Globalstar jumped more than 15%In talks to acquire the satellite communications enterprise, in extended trading on Wednesday after the Financial Times reported Amazon is, citing individuals familiar with the matter.

The companies were still negotiating over some of the complexities of a deal following lengthy talks, the Times reported. One of the complicating factors is that Apple took a 20% stake in Globalstar in 2024, as part of a , according to the FT$1.5 billion investment to boost the company’s constellation and ground infrastructure.

Amazon declined to comment. Representatives from Globalstar didn’t immediately respond to a request for comment. This also touches on aspects of bull market.

A deal with Globalstar could bolster Amazon Leo, the company’s nascent internet-from-space service. Amazon has launched about 200 satellites in low Earth orbit since last April, and it’s aiming to roll out commercial service later this year.

The enterprise intends to build out a constellation of roughly 7,700 satellites, though it has faced delays in its satellite deployment milestones. Amazon in January asked the Federal Communications Commission for more time to meet a deadline that requires it to launch roughly 1,600 satellites by July 2026.

Amazon is vying to compete with SpaceX’s Starlink, which has a significant head start with more than 10,000 satellites in orbit and over 9 million users.

Bloomberg reported last October that Globalstar was exploring a potential sale and held early discussions with Elon Musk’s SpaceX.

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