GoKawiilGlobalstar Chairman and CEO Jay Monroe rings the opening bell at the New York Stock Exchange, April 21, 2014.
Shares of Globalstar jumped more than 15% in extended trading on Wednesday after the Financial Times reported Amazon is in talks to acquire the satellite communications company, citing people familiar with the matter.
The companies were still negotiating over some of the complexities of a deal following lengthy talks, the Times reported. One of the complicating factors is that Apple took a 20% stake in Globalstar in 2024, according to the FT, as part of a $1.5 billion investment to boost the company's constellation and ground infrastructure.
Amazon declined to comment. Representatives from Globalstar didn't immediately respond to a request for comment.
A deal with Globalstar could bolster Amazon Leo, the company's nascent internet-from-space service. Amazon has launched about 200 satellites in low Earth orbit since last April, and it's aiming to roll out commercial service later this year.
The company intends to build out a constellation of roughly 7,700 satellites, though it has faced delays in its satellite deployment milestones. Amazon in January asked the Federal Communications Commission for more time to meet a deadline that requires it to launch roughly 1,600 satellites by July 2026.
Amazon is vying to compete with SpaceX's Starlink, which has a significant head start with more than 10,000 satellites in orbit and over 9 million users.
Bloomberg reported last October that Globalstar was exploring a potential sale and held early discussions with Elon Musk's SpaceX.