Amazon aims to challenge Starlink

by Alimat Aliyeva

The American corporation Amazon has reportedly entered negotiations to acquire Globalstar, a satellite communications group valued at nearly $9 billion, in a bid to compete with Starlink, Elon Musk’s SpaceX global satellite network, AzerNEWS reports.

Sources indicate that the two companies are working to resolve several complex issues. A key point is that Apple currently owns a 20% stake in Globalstar, requiring Amazon to negotiate with the tech giant. In 2024, Apple invested $1.5 billion in Globalstar, and as part of that deal, Globalstar agreed to reserve 85% of its network capacity for Apple, primarily for sending text messages via satellites in areas without cellular coverage.

Shares of Globalstar, a telecommunications company founded in 1991 that operates a constellation of low-Earth orbit satellites, have surged in recent months amid takeover speculation. Investors are betting that it could emerge as a serious competitor to SpaceX. Analysts note that “acquiring Globalstar would significantly strengthen Amazon’s ability to develop its own low-orbit satellite business and expand its footprint in space communications.”

Amazon is also pushing forward its Project Kuiper, which aims to build a large-scale low-Earth orbit satellite constellation to provide global high-speed broadband internet. However, the project currently lags behind Starlink in terms of coverage and speed.

If the acquisition succeeds, Amazon could integrate Globalstar’s satellite network with its cloud and logistics infrastructure, potentially enabling instant connectivity for Amazon delivery drones and remote warehouses — a move that could reshape e-commerce and satellite communications simultaneously.