Amazon Nears Deal for Globalstar in Push to Rival Musk's Starlink

(Bloomberg) — Amazon.com Inc. (AMZN) is in advanced talks to acquire satellite operator Globalstar Inc. in a deal that would boost the tech giant’s efforts to build its own satellite operation, according to people familiar with the matter.

A transaction could be announced as soon as Tuesday, said the people, who asked not to be identified because the information was private. A final agreement hasn’t been reached and talks might still end without one, or the timing could change, the people said. A representative for Globalstar didn’t respond to a request for comment. A spokesperson for Amazon declined to comment.

Globalstar’s shares soared about 19% in pre-market trading. The company’s market value has nearly quadrupled over the past year, reaching about $9.4 billion.

Amazon is building out its low-earth-orbit satellite network, Amazon Leo, in a bid to compete with Elon Musk’s SpaceX, whose fast-growing Starlink unit has more than 10 million active customers and about 10,000 satellites in orbit. Starlink is anticipated to bring in more than $9 billion in revenue this year.

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