Globalstar: Are we headed for a battle of giants over orbit?

Globalstar shares surged already in pre-market trading following a “Financial Times” report that Amazon is in talks to acquire the company. At the time of writing, the stock is up about 7%.

Globalstar is a low-Earth-orbit satellite operator providing connectivity services to clients across various sectors, from defense to major technology companies. One customer is satisfied enough with the company’s services that it wants exclusivity—namely, Amazon.

Amazon is a global conglomerate in the truest sense. Having its own satellite network would be not only feasible but also highly desirable, especially given the company’s evolving profile, in which IT/AI is playing an increasingly important role relative to e-commerce.

As for Globalstar, the company is relatively small considering its ambitions and, like most private operators of orbital infrastructure, still not profitable. It has to pursue extreme specialization to survive.

• In 2025, Globalstar increased revenue by 9% to $273 million and improved its net result, but it still ended the year with a net loss of $8.7 million. At the same time, adjusted EBITDA totaled $136.1 million, and the EBITDA margin reached 50%.

However, an acquisition may not be as easy as Amazon would like. Another giant stands in the way, Apple. As early as 2022, Apple announced a $450 million investment in infrastructure needed to launch the Emergency SOS feature for iPhones. Over time, the scope of satellite use in Apple devices expanded and now includes not only emergency calls for help, but also selected messages, roadside assistance, and location sharing outside cellular coverage and Wi‑Fi range.

An official filing with the SEC shows that Apple, as a “Customer,” agreed to finance the expansion of Globalstar’s new MSS network. This includes a prepayment in exchange for a 20% Class B stake in a special-purpose vehicle, Globalstar SPE. Globalstar retains control over managing this vehicle, but

it is also expected to allocate 85% of its network capacity, both current and new, to services for Apple.

That’s why the Amazon story is more complex than the headline about a potential takeover suggests. Reuters reported that one of the complications in the talks is precisely Apple’s involvement and the need for discussions between Amazon and Apple.

The company’s future remains a mystery. The acquisition may not happen; the two market titans may reach an agreement; or we may be in for a fight between giants for control over a new domain, space.