NEW YORK — Shares of Globalstar Inc. climbed sharply in early trading Tuesday after reports emerged that Amazon.com Inc. is in advanced negotiations to acquire the satellite communications company in a deal valued at approximately $11.6 billion, a move that would significantly bolster Amazon's low-Earth orbit satellite ambitions and intensify competition with SpaceX's Starlink network.

Globalstar Stock Surges 10% on Report Amazon Nears $11.6 Billion
Globalstar Stock Surges 10% on Report Amazon Nears $11.6 Billion Takeover to Rival SpaceX Starlink

Globalstar (NASDAQ: GSAT) stock was trading at $79.96, up $7.07 or 9.70%, shortly after the market open on April 14, 2026. The surge followed Bloomberg and other outlets reporting that Amazon is nearing a takeover agreement, with an announcement potentially imminent. The proposed transaction would give Amazon control of Globalstar's existing satellite fleet, ground infrastructure and spectrum assets, helping accelerate its Project Kuiper satellite internet service.

The potential acquisition comes as Amazon ramps up efforts to deploy thousands of satellites to provide broadband connectivity, directly challenging SpaceX's dominant Starlink constellation, which has grown to more than 10,000 satellites. A deal for Globalstar would provide Amazon with immediate operational assets and spectrum rights, shortening the timeline for commercial rollout while adding capacity for direct-to-device connectivity.

Globalstar has long operated a constellation of low-Earth orbit satellites offering voice, data and IoT services. The company gained renewed prominence after partnering with Apple, which invested $1.5 billion in 2024 and took a roughly 20% stake. Under that agreement, Apple secured access to 85% of Globalstar's network capacity to power Emergency SOS, Messages via satellite and other features on iPhones. Apple's involvement has complicated but not derailed the Amazon talks, with separate negotiations reportedly addressing the tech giant's equity position and capacity rights.

Analysts view the potential takeover as a strategic masterstroke for Amazon. Project Kuiper has faced delays, and acquiring Globalstar's proven infrastructure could provide a faster path to market while enhancing capabilities in direct-to-cell technology. The deal would also expand Amazon's footprint in the rapidly growing satellite communications sector, where demand for resilient connectivity continues to rise for consumers, enterprises and government users.

Globalstar's stock has been on a remarkable run, surging more than 270% over the past year as investor interest in satellite infrastructure intensified. The shares had already climbed steadily on speculation of a sale process that reportedly included early discussions with other parties, including SpaceX. Tuesday's move pushed the stock to levels not seen in nearly two decades, reflecting strong market conviction that a deal could close soon.

The reported purchase price implies a significant premium. Under one structure discussed in reports, Globalstar stockholders could elect to receive either $90 in cash or approximately 0.3210 shares of Amazon common stock per Globalstar share. The transaction would combine cash and stock consideration, giving shareholders flexibility while allowing Amazon to conserve cash.

Globalstar reported strong financial momentum heading into 2026. For full-year 2025, the company posted record revenue of approximately $273 million. In February, management issued 2026 revenue guidance of $280 million to $305 million, slightly above some consensus expectations at the time. The company has been expanding its second-generation constellation, with contracts worth more than $1 billion for new satellites manufactured by MDA Space and others.

Beyond the Apple partnership, Globalstar has pursued growth in private 5G networks through its XCOM RAN subsidiary and enterprise IoT applications. The April 7 announcement of a next-generation end-to-end private 5G solution underscored the company's push into terrestrial and hybrid connectivity markets, diversifying beyond pure satellite services.

If the Amazon deal materializes, it would mark one of the largest acquisitions in the satellite sector in recent years and highlight the intense race among tech giants to dominate space-based communications. SpaceX's Starlink has set the pace with rapid deployment and vertical integration, but Amazon, with its vast cloud infrastructure and e-commerce reach, could leverage Globalstar's assets to create a formidable competitor.

Wall Street reaction has been overwhelmingly positive on the news. Several analysts raised price targets or reiterated buy ratings in recent weeks, citing the strategic value of Globalstar's spectrum holdings and operational fleet. The stock's volatility remains high, typical for companies in the satellite and space infrastructure space, but Tuesday's volume indicated broad participation from both retail and institutional investors.

Challenges and uncertainties persist. Regulatory approvals from the FCC and international bodies could take time, especially given spectrum and national security considerations. Apple's substantial stake and capacity rights would likely require careful renegotiation to ensure continuity of iPhone satellite features while allowing Amazon to integrate the network into Project Kuiper.

Globalstar's leadership, including Executive Chairman James Monroe III, has positioned the company as a next-generation telecommunications provider with both satellite and terrestrial capabilities. The potential sale would deliver substantial value to long-term shareholders who have endured years of volatility and dilution risks as the company invested in constellation refreshes.

The broader satellite communications market has heated up amid growing demand for global connectivity. Governments and enterprises seek redundant networks resilient to terrestrial outages, while consumers in remote areas increasingly expect high-speed internet. Direct-to-device technology, which allows standard smartphones to connect directly to satellites, represents a particularly promising growth area that both Globalstar and Amazon have targeted.

Tuesday's trading action kept GSAT among the top percentage gainers on the Nasdaq. The modest opening gain of nearly 10% followed after-hours strength on Monday and reflected continued momentum from the takeover speculation. Some investors expressed caution that the deal could still face hurdles, but the prevailing sentiment pointed to high conviction in a positive outcome.

Globalstar operates a fleet that has provided reliable service for decades, evolving from traditional mobile satellite services to more advanced LEO capabilities. Its ground stations and spectrum authorizations span multiple countries, offering strategic value in a fragmented regulatory environment.

For Amazon, the acquisition would complement heavy investments in Project Kuiper, which aims to launch thousands of satellites. Integrating Globalstar's existing operations could accelerate service availability and provide immediate revenue streams while Amazon scales its own constellation.

The news also lifted other satellite-related stocks, including Iridium and ViaSat, as investors extrapolated broader sector momentum. However, Globalstar's unique positioning — with Apple backing and spectrum assets — made it the clearest beneficiary.

As markets digested the reports, attention turned to potential next steps. Confirmation from either company could come soon, though deal complexities, including Apple's role, may extend timelines. In the interim, Globalstar continues normal operations, including ongoing satellite deployments and commercial expansions.

The proposed transaction underscores the strategic importance of satellite infrastructure in the digital economy. From emergency communications to broadband access in underserved regions, low-Earth orbit systems are becoming essential infrastructure. A successful Amazon-Globalstar combination could reshape competitive dynamics and accelerate innovation in the space.

Globalstar shareholders stand to benefit significantly if the deal closes at the rumored terms. The premium reflects not only current assets but also future growth potential in a market projected to expand rapidly over the coming decade.

For now, investors are betting that Amazon's resources and vision will unlock even greater value from Globalstar's network. Tuesday's surge caps a period of intense speculation and highlights the transformative potential of satellite technology in an increasingly connected world.

With the satellite race intensifying, Globalstar's story may soon shift from independent operator to integral part of a tech titan's space ambitions — a development that could redefine its trajectory for years to come.