Amazon acquisition negotiation news drives Globalstar stock price soaring to an 18-year high

Investing.com - According to a report by the British Financial Times, Amazon is in talks to acquire the satellite communications company Globalstar. On the back of this news, Globalstar’s stock surged to a 18-year high during Wednesday after-hours trading.

Globalstar Inc (NASDAQ:GSAT) shares jumped about 16% in after-hours trading to $79.70, reaching the highest level since early 2008.

The Financial Times reported that Amazon.com Inc (NASDAQ:AMZN) is in talks to acquire the company, a move that may be aimed at strengthening its low-Earth-orbit satellite business and competing with Elon Musk’s Starlink.

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The Financial Times said both sides are still negotiating the complexities of the deal. One complicating factor is that Apple Inc (NASDAQ:AAPL) holds a 20% stake in Globalstar, which would require Amazon to negotiate with the iPhone maker.

Over the past 12 months, Globalstar’s stock has risen by about 230%. Market speculation has suggested the company could attract acquisition interest, as it may become a potential competitor to Starlink, SpaceX’s low-orbit satellite communications unit.

Apple invested $1.5 billion in Globalstar in 2024.

Amazon has been pushing its own satellite project, Leo. It currently has more than 180 satellites in orbit—just a small fraction of the more than 10,000 satellites operated by SpaceX.

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