Globalstar Surges 10% as Amazon Circles a $9 Billion Takeover Bid
NEW YORK, April 3 —
Globalstar (GSAT) jumped 10.3% to $77.73 after the Financial Times reported Amazon is in advanced talks to buy the satellite company for roughly $9bn.
- GSAT shares gained 10.3% in a single session, extending a 231% rally over the past year
- The reported $9bn price tag values Globalstar at 224.5x forward earnings on $273mn in trailing revenue
- Amazon deal talks are ongoing, with Apple's 20% stake and 85% network capacity lock-up as the central obstacle
What Actually Happened
Forget the earnings. The catalyst is M&A. Globalstar posted record 2025 revenue of $273mn, up 9% YoY, and guided for $280-305mn in 2026 with a 50% adjusted EBITDA margin. Solid numbers — but a 10% single-day pop doesn't come from solid numbers. It comes from Amazon reportedly trying to buy the whole company and turn Globalstar's satellite spectrum into a weapon against SpaceX's Starlink in the direct-to-device race.
The wrinkle most coverage misses: Apple already owns 20% of Globalstar and controls 85% of its network capacity through a $1.5bn investment made in late 2024. That capacity powers Emergency SOS via Satellite on every iPhone and Apple Watch. Any Amazon acquisition has to work around Apple's contractual grip on the network. Apple is not a passive shareholder. It's the anchor tenant.
The Catch
At 224.5x forward earnings, Globalstar's valuation prices in a future that hasn't arrived. The Wholesale Capacity Services segment — essentially Apple revenue — hit $46.3mn in Q1 2026, up 28% YoY. Real growth. But $9bn for a company guiding to $305mn in revenue at the high end works out to a 29x revenue multiple. Even Iridium, the gold standard in satellite comms, trades at roughly 8x. Amazon would be paying for spectrum optionality, not current cash flows. If the deal falls apart, the stock reprices to fundamentals fast.
Bottom Line
This is a spectrum play dressed up as a satellite company. Amazon wants the frequencies. Apple needs the network. Globalstar shareholders are caught between two of the richest companies on Earth — a great position, until it isn't. If Amazon closes near $9bn, current holders win. If talks collapse, you own a $273mn revenue business at a nosebleed multiple. Watch for a formal offer price. Silence past Q2 would signal the deal's complexity killed it.
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