Globalstar‘s (GSAT 6.52%) stock recently popped amid reports that Amazon (AMZN +1.43%) was in talks to acquire the satellite maker for $8.8 billion. Let’s see why Amazon might be interested in Globalstar, and if a takeover would drive its stock higher.
Why could Amazon be interested in Globalstar?
Amazon is already the world’s largest e-commerce and cloud infrastructure company, but it’s been quietly building its own low-earth orbit (LEO) satellite business to challenge SpaceX’s Starlink and AST SpaceMobile (ASTS +2.37%) in the nascent market.
Image source: Getty Images.
Amazon Leo, the company’s LEO satellite business formerly known as Project Kuiper, has already deployed 180 satellites and aims to deliver cellular connectivity to rural areas that terrestrial towers can’t reach. The Federal Communications Commission (FCC) already approved Amazon’s plan to launch a constellation of more than 3,200 satellites in 2020.
Amazon Leo is much bigger than AST SpaceMobile, which has only…
https://www.fool.com/investing/2026/04/06/could-acquiring-the-satellite-communications-compa/