It is reported that Amazon plans to acquire Global Star Challenge SpaceX for $9 billion, with Apple holding a 20% stake becoming the biggest variable

According to reports, technology giant Amazon (AMZN.US) is in deep negotiations to acquire satellite communications operator Globalstar (GSAT.US), aiming to accelerate its low Earth orbit satellite business layout and directly compete with SpaceX's Starlink. This potential deal is estimated to be valued at up to $9 billion, and in the context of the increasingly fierce global low Earth orbit satellite internet competition, the market generally views this move as a key acceleration engine for Amazon's "Leo" (formerly known as "Project Kuiper").

Globalstar, headquartered in Covington, Louisiana, is known for its low Earth orbit communication satellites, providing voice, data, and asset tracking services to businesses, governments, and consumer markets. The company's stock price has doubled in market value over the past year, and spurred by rumors of this significant acquisition, its stock price surged over 20% during after-hours trading on Wednesday, reaching a high of $85 per share, fully reflecting the market's high attention and expectations for this strategic acquisition.

Although Amazon has shown a strong intention to acquire, the advancement of this deal still faces a complex game, especially with technology giant Apple (AAPL.US) playing a crucial role. As a long-term deep partner of Globalstar, Apple currently holds about 20% of the company's shares after investing $1.5 billion in 2024.

More critically, 85% of Globalstar's existing satellite capacity is exclusively locked for Apple to support the "satellite emergency SOS" feature for iPhones. This means that for Amazon to successfully take over Globalstar, it not only needs to overcome legal and financial hurdles but must also reach a rare compromise with competitor Apple regarding infrastructure sharing and future technology roadmaps.

From an industry perspective, Amazon's move at this time reflects its urgent desire to catch up with SpaceX's Starlink. Compared to Starlink's mature network of over 9,500 satellites, Amazon's Kuiper project has only deployed 180 satellites so far, and has been hindered by insufficient launch capacity and deployment delays.

By acquiring Globalstar, which has mature orbital authorizations and ground station facilities, Amazon can significantly shorten the construction cycle for network coverage. However, market analysts also point out that Globalstar has also been rumored to be in talks with other potential buyers over the past year, including Elon Musk's SpaceX.

The current situation makes Globalstar a core hub in the satellite communications field. For Amazon, this is not only an expansion of hardware facilities but also a strategic competition for satellite spectrum resources and global low Earth communication discourse power.

If this $9 billion deal ultimately goes through, it will completely reshape the current satellite internet landscape dominated by SpaceX and may prompt the two ecological giants, Apple and Amazon, to engage in unprecedented deep competition and cooperation in deep space communication.

It is worth mentioning that, according to informed sources, SpaceX has submitted a confidential application for an IPO. Earlier reports indicated that SpaceX plans to raise about $40 billion to $80 billion through the IPO, with a target valuation of $1.75 trillion This declaration makes it possible for the company to complete its listing as early as July this year, which aligns with the timeline previously disclosed by Musk to insiders.

Currently, both Amazon and Global Star remain silent, refusing to make any formal comments on this rumor. As of the time of publication, Global Star's after-hours stock price has retreated to a 18.02% increase, trading at $80.85