[hl_globalstar] Amazon $9-10B Globalstar acq talks advanced FT/WSJ ($9B); Kuiper/Leo vs Starlink; Apple SOS veto/FCC July/212 sats; GSAT $73 hold post-surge/earnings May7.
Key Questions
Is Amazon in talks to acquire Globalstar?
Amazon is in advanced talks to acquire Globalstar, as reported by FT, WSJ, Barron's, AOL, Seeking Alpha, CNBC, and chroniclejournal. Negotiations continue over deal complexities.
What is the rumored valuation of the Globalstar acquisition?
The deal is valued at $9-10B, with recent rumors specifying around $9B. This would provide Amazon with spectrum assets and gateways.
Why is Amazon interested in acquiring Globalstar?
The acquisition aims to accelerate Project Kuiper satellite broadband against SpaceX's Starlink, which has 200+ satellites and 7.7k targets. It ties to Delta's 500-plane Leo WiFi deal and service revenue.
How has Globalstar's stock reacted to the acquisition reports?
Globalstar (GSAT) surged 13-21% to $69-79 after-hours, with +230-260% gains, +24% AH, +8.7% MoM, and +10% recently. IRDM and VSAT also jumped 15-19%.
What role does Apple play in the Globalstar deal?
Apple holds a 20-85% capacity stake in Globalstar for iPhone SOS/messaging features, posing a potential veto risk. This could scuttle the deal per Barron's.
How does the deal relate to Amazon's Project Kuiper?
Globalstar provides spectrum and gateways to boost Kuiper's low Earth orbit satellite broadband ambitions versus Starlink. Reports highlight this as key to satellite wars.
What is the current status of the Amazon-Globalstar talks?
Talks are advanced but face hurdles like timeline and Apple snag, per May 10 CNBC/FT recaps, chroniclejournal, and podcasts. Deal remains in negotiation phase.
Which competitors are impacted by this potential deal?
The deal positions Amazon to challenge SpaceX's Starlink directly in satellite broadband. It also involves ties to Apple's iPhone features and Delta's aviation WiFi.
Advanced $9-10B Globalstar talks (FT/WSJ/Barron's/CNBC) for Kuiper spectrum/gateways vs Starlink; GSAT holds $73 post-AMZN rumor surge, cash $447M, hedge funds Soros/AQR in; Apple 20% stake/iPhone veto/Delta 500-plane/FCC July; earnings May7 flashpoint raises deal odds but PTs cap upside.