Globalstar: Are We Headed for a Battle of Giants Over Orbit?
On April 2, 2026, Globalstar Inc. (GSAT.US) saw a significant surge in its stock price, rising approximately 7% in pre-market trading. This increase followed a report from the "Financial Times" indicating that Amazon is in discussions to acquire the satellite operator. Globalstar specializes in low-Earth-orbit satellite connectivity services, catering to various sectors, including defense and technology.
Amazon's Interest in Globalstar
Amazon's potential acquisition of Globalstar aligns with its strategic goals, particularly as the company increasingly integrates IT and AI into its operations. Owning a satellite network would enhance Amazon's capabilities, especially in areas beyond e-commerce.
Globalstar's Financial Performance
Despite its ambitions, Globalstar remains a relatively small player in the satellite industry and has yet to achieve profitability. In 2025, the company reported a 9% increase in revenue, totaling $273 million, but still faced a net loss of $8.7 million. The adjusted EBITDA was $136.1 million, reflecting a robust EBITDA margin of 50%.
Apple's Complication in the Acquisition
The acquisition talks are complicated by Apple's existing relationship with Globalstar. In 2022, Apple invested $450 million to support the infrastructure necessary for its Emergency SOS feature on iPhones. This partnership has expanded to include various satellite services, such as emergency calls and location sharing. An official SEC filing revealed that Apple has financed the expansion of Globalstar's new Mobile Satellite Services (MSS) network, securing a 20% stake in a special-purpose vehicle, Globalstar SPE, while also expecting 85% of Globalstar's network capacity to be allocated to Apple services.
The Future of Globalstar
The future of Globalstar remains uncertain. The potential acquisition by Amazon may not materialize due to Apple's involvement, leading to a possible negotiation between the two tech giants. This situation could result in a competitive struggle for dominance in the emerging space economy.