Amazon eyes $11 billion Globalstar deal to rival SpaceX’s Starlink: FT report
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Amazon’s network would be the closest rival to Mr Elon Musk’s Starlink, which operates a network of more than 9,500 satellites.
PHOTO: REUTERS
Bengaluru - Amazon is in talks to buy satellite telecom group Globalstar as it ramps up efforts to build its own low-earth-orbit satellite business to rival SpaceX’s Starlink, the Financial Times reported on April 1, citing people familiar with the matter.
Globalstar’s shares, which have more than doubled in market value over the past year, surged 24 per cent to US$85 in extended trading following the report. The company had a market cap of US$8.8 billion (S$11.3 billion) as at last close.
US-headquartered Globalstar is known for its low-earth-orbit communication satellites and offers voice, data and asset-tracking services across enterprise, government and consumer markets.
Amazon and Globalstar were still negotiating some of the complexities of a potential deal after lengthy talks, according to the report.
One complicating factor has been Apple’s ownership of a 20 per cent stake in Globalstar, necessitating negotiations between Amazon and Apple, the report said.
Globalstar did not immediately respond to Reuters’ request for comment. Amazon declined to comment.
The reported deal comes as Amazon deploys Leo, formerly known as Project Kuiper, involving 3,200 satellites.
Amazon’s network would be the closest rival to billionaire tycoon Elon Musk’s Starlink, which operates a network of more than 9,500 satellites.
Starlink services more than nine million users globally, and generates 50 per cent to 80 per cent of SpaceX’s revenue.
Its services span individual consumers, businesses and governments, including US national security agencies through its Starshield variant.
Amazon’s Leo, with 180 satellites in orbit so far, is targeting similar customers.
Meanwhile, SpaceX has confidentially filed for a US initial public offering, two people familiar with the matter told Reuters earlier on April 1, setting the stage for what could become the largest stock market listing on record.
Analysts estimate that much of SpaceX’s potential US$1.75 trillion potential valuation would be driven by its Starlink satellite business. REUTERS
