Amazon's move comes as SpaceX—the company owned by billionaire Elon Musk that operates Starlink—has just filed for what could be the largest initial public offering in history.
Amazon is in negotiations to acquire the American satellite telecommunications company Globalstar, aiming to bolster its ambitions to compete with billionaire Elon Musk's Starlink satellite internet service.
According to the Financial Times, the two sides are negotiating the complex terms of the deal. However, no agreement has been signed yet, and the negotiations remain at risk of breaking down.
Amazon's move comes as SpaceX—the company owned by billionaire Elon Musk that operates Starlink—has just filed for what could be the largest initial public offering in history. Starlink currently operates more than 10,000 satellites, providing internet connectivity globally.
Meanwhile, Amazon is building a competing network called Amazon Leo, with over 200 satellites already in orbit. Globalstar—a company with a market value of approximately $9 billion—also owns a constellation of satellites in low Earth orbit, but on a smaller scale.
One factor contributing to the prolonged negotiations is Apple's 20% stake in Globalstar, forcing Amazon to negotiate simultaneously with the tech giant.
Globalstar's stock has surged nearly 230% over the past year. Previously, Bloomberg reported that Globalstar was considering selling the company, with several parties interested, including SpaceX.
A source also confirmed that SpaceX has filed for an IPO under a confidential filing and could list its shares in July, with an estimated valuation of $75 billion or more.