GoKawiilAmazon is in talks to acquire the satellite telecommunications group Globalstar, a deal that would bolster the e-commerce giant’s effort to build its own low-Earth orbit satellite business.
The two sides were still negotiating over some of the complexities of a deal after lengthy talks, according to people familiar with the matter.
One complicating factor has been Apple’s ownership of a 20 percent stake in Globalstar, necessitating negotiations between Amazon and Apple, the people said.
Acquiring the satellite group would accelerate Amazon’s push to compete with Elon Musk’s SpaceX and its Starlink orbital Internet service.
No deal had been finalized and discussions could yet shift or collapse, the people warned.
Globalstar said: “As a company policy, Globalstar does not comment on industry speculation or rumors.” Amazon declined to comment. Apple did not immediately respond.
Founded in 1991, Globalstar shares have surged in recent months on the back of takeover speculation, reaching a market capitalization of about $9 billion on Wednesday.
Its stock is up about 230 percent over the past year, with investors betting it could be a challenger to SpaceX.
Globalstar has attracted interest from various other suitors as companies seek to build out their own constellations of low-Earth orbit satellites, in which Starlink is the dominant player.