Amazon.com Inc. is teaming up with satellite operator Globalstar Inc. is in advanced talks to acquire the company to strengthen its own satellite business. The deal could be announced as early as Tuesday, people familiar with the matter said. The deal would mark an intensification of competition between Amazon and Elon Musk's SpaceX and could accelerate Amazon's efforts to build its network of low-Earth orbit satellites, known as Amazon Leo.
The two sides have not yet reached a final agreement and talks could still fail or the timing could change, people familiar with the matter said.
Globalstar's shares have nearly quadrupled in the past year, giving the company a market capitalization of about $9.4 billion.
Amazon is building a low-Earth orbit satellite network called Amazon Leo to provide high-speed Internet services to rural and remote areas in the United States, with the goal of operating more than 7,700 satellites. Currently, the service is being tested in some enterprises. Amazon has applied to the U.S. Federal Communications Commission (FCC) for a waiver or extension to its July deadline to launch 1,600 satellites, but Amazon Leo currently appears to be far from reaching that goal.
Globalstar could speed up Amazon's process because it already operates a well-oiled satellite network. Globalstar’s network is smaller than Starlink and focuses primarily on providing network connections for mobile phones and other devices in areas with weak signal coverage.