Amazon Globalstar Acquisition: Why Apple Wins the $9 Billion Deal
Amazon is talking to Globalstar about a $9 billion buyout, according to an April 1 Financial Times report. The news sent Globalstar’s stock to an 18-year high, jumping nearly 20% after the closing bell. We’re in a quiet period—no word from Amazon or Globalstar, and certainly nothing from Apple. Still, the market is pricing this like it’s a done deal. That feels premature given how messy this asset actually is.
The bidding war actually goes back to October 2025, when Bloomberg first mentioned SpaceX’s interest. That one report sent Globalstar’s trading volume up fivefold. By January, Amazon was the favorite. But things got strange in late March at a D.C. satellite conference. Analyst Tim Farrar reported that Globalstar’s chairman, Jay Monroe, basically took Amazon’s offer and shopped it to SpaceX. SpaceX likely outbid them, but probably not because they wanted the satellites. They just wanted to keep Amazon away from the spectrum. Now, the FT says Amazon is back in the lead.
The background here is key. SpaceX just closed a $17 billion deal for EchoStar’s spectrum using a mix of cash and stock. They say it’ll boost Starlink’s capacity by 100 times. Since SpaceX already has what it needs, they might just be squeezing Amazon—forcing them to overpay for a secondary asset. It’s not a bidding war; it’s a trap.
Most people see this as a satellite play. It isn’t. Globalstar’s real value is a mix of three things: spectrum for phone-to-satellite links, a terrestrial frequency called n53 for private networks, and a massive, pre-existing entanglement with Apple.
Globalstar’s 2024 filings show just how entangled they are. Apple has dumped over $1 billion into prepayments and owns 20% of the subsidiary that holds the new satellites. Last year, Apple accounted for 63% of Globalstar’s total revenue. This isn't some minor detail. It’s the entire business. If Amazon buys Globalstar, they aren't buying an independent company. They’re buying into a structure where Apple already controls the governance and the revenue.
The math for Amazon is tough. Project Kuiper has 200 satellites up and a deal with Delta, but they are still 1,000 satellites behind their FCC targets. They’ve asked for a two-year extension, which even earned them a public lecture from the FCC chairman. Starlink, meanwhile, is pushing 10,000 satellites.
A $9 billion price for Globalstar would be 33 times its 2025 sales. That’s a "scarcity premium" you only pay if everything goes perfectly. Amazon has to keep Apple happy, get the regulators to sign off without a fight, and find a way to make the spectrum pay for itself beyond just one customer. If it doesn't speed up their timeline, it’s just an expensive way to save face.
Across the rest of the sector, Globalstar is now purely a trade. The price is headed for a ceiling, and the downside is ugly if the deal breaks. Amazon only wins here if they don’t let a bidding war turn into an ego trip. Apple is the quiet winner—they get their service guaranteed no matter who pays the bills. AST SpaceMobile is getting a sentiment boost purely by association. Meanwhile, Iridium, which actually makes money and has a new service coming next year, looks like the most ignored quality play on the board.
I’d put the odds of a $9 billion Amazon deal at 40%. There’s a 30% chance it just falls apart. A 20% chance SpaceX is just sticking around to drive the price up for its rival. And there’s a 10% chance of a joint venture—something that makes a lot of sense but doesn't make for a good headline.
Forget the "satellite empire" talk. Globalstar is small, but it sits on a vital square of the board. Amazon wants it because they’re playing catch-up with Starlink. But Globalstar is essentially Apple’s satellite division. Amazon could end up paying $9 billion just to realize they’re working for Tim Cook. The real winner of this deal isn't the one writing the check.
not investment advice
Sources: https://www.ft.com/content/abace066-fe93-4ff0-8378-d3c3eb49519c