Amazon in Advanced Talks to Acquire Globalstar
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 14 2026
0mins
Should l Buy GSAT?
Source: Yahoo Finance
Globalstar Inc (GSAT) shares surged 9.71% in pre-market trading, reaching a 52-week high, as news broke of Amazon's advanced discussions to acquire the satellite operator.
The acquisition talks are expected to significantly enhance Amazon's positioning in the satellite operations sector, allowing it to expand its satellite communication capabilities and improve its competitive standing in the tech market. This strategic move comes amid rising demand for satellite internet services, positioning both companies favorably for future market competition.
The implications of this acquisition could be profound, as it not only strengthens Amazon's technological strategy but also enhances its overall service capabilities in cloud computing and IoT, potentially reshaping the landscape of satellite communications.
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Analyst Views on GSAT
Wall Street analysts forecast GSAT stock price to fall
5 Analyst Rating
3 Buy
2 Hold
0 Sell
Moderate Buy
Current: 82.090
Low
60.00
Averages
67.00
High
75.00
Current: 82.090
Low
60.00
Averages
67.00
High
75.00
About GSAT
Globalstar, Inc. is a global telecommunications provider. The Company provides mobile satellite services, including voice and data communications services to retail, business and governmental customers, as well as wholesale satellite capacity services. It also offers these services over its network of in-orbit satellites and ground stations. Its low earth orbit (LEO) satellite constellation and licensed Band 53/n53 spectrum, it delivers satellite and terrestrial connectivity solutions. Its comprehensive connectivity ecosystem includes a software-defined, purpose-built private wireless network platform, coupled with Globalstar Band 53 in XCOM RAN and trusted GPS messengers Saved by SPOT for safety and personal communication for business and enterprise applications. The Company serves business, enterprise, and consumer markets across the globe. It supports applications that track and protect assets, enable automation, enhance operational efficiency, and safeguard lives.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Competitive Landscape: Amazon Leo directly competes with SpaceX's Starlink, which currently boasts over 7,800 satellites and 2.7 million customers, while Amazon is actively expanding its satellite network, having completed 10 launches and planning to deploy 50 more satellites in the near future.
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- Competitive Threat: Amazon is developing its satellite communication network, Amazon Leo, planning to compete with Starlink by acquiring Globalstar and launching additional satellites, which could lead to price wars and compress SpaceX's profits.
- Regulatory Dynamics: Amazon has requested an extension from the FCC for its satellite launch deadline, aiming to complete its constellation in the coming years, a move that could foster market competition and impact SpaceX's market share.
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See More
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- Strong Customer Base: Amazon Leo has already secured customers like AT&T, Delta Air Lines, JetBlue, and NASA, and notably gained Apple's support through the acquisition of Globalstar, enhancing its competitive position in the market.
- Significant Technical Advantages: Jassy noted that Amazon Leo will improve downlink and uplink performance by 2x and 6x over existing competitors, respectively, while also offering cost advantages, which is expected to attract more users, especially in underserved broadband areas.
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See More
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- Cloud Business Growth: AWS revenue is projected to reach $36.92 billion, representing a 26% increase year-over-year, indicating Amazon's strengthening position in the cloud computing sector, particularly amid surging demand for AI services.
- Rising Capital Expenditures: Amazon anticipates capital expenditures will hit $200 billion by 2026, exceeding analyst expectations by $50 billion, highlighting significant investment decisions in AI and satellite internet services.
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