GSAT Stock Soars After Hours On Reports Of Buyout Talks With Amazon

• However, no deal has been finalised and the talks could collapse without an agreement, FT said. 
• A deal would require Amazon to engage with Apple, given that the iPhone maker owns a 20% stake in Globalstar. 
• Globalstar has reportedly drawn interest from other suitors as well.

Shares of Globalstar (GSAT) soared 20% after hours on Wednesday following reports that Amazon is in talks to acquire the company.

Financial Times reported on Wednesday that the online retailer is in talks to acquire Globalstar in a bid to build its own network of internet satellites in low Earth orbit. The two companies are negotiating over deal complexities after lengthy talks, the report said.

However, no deal has been finalised and the talks could collapse without an agreement, the report added. Further, a deal would require Amazon to engage with Apple, given that the iPhone maker owns a 20% stake in Globalstar.  

Amazon’s Constellation Efforts

Amazon is currently attempting to build a network of communication satellites in low Earth orbit rivaling Musk’s Starlink called Leo. Amazon launched the first batch of satellites in the constellation last year.

Currently, Amazon has about 200 satellites in its constellation, compared to SpaceX’s near 10,000. Acquiring Globalstar would accelerate Amazon’s push.

Other Suitors

According to FT, Globalstar has also drawn interest from other suitors as well. In October, Bloomberg also reported that Globalstar is exploring a sale and held early talks with Musk’s SpaceX , among other potential suitors.  

How Did Retail Traders React?

On Stocktwits, retail sentiment around GSAT stayed within the ‘extremely bullish’ territory over the past 24 hours, while message volume stayed at ‘high’ levels.

Meanwhile, sentiment around AMZN rose from ‘bearish’ to ‘neutral’ during the same time frame.

GSAT and AMZN stocks have risen 231% and 10%, respectively, over the past 12 months.  

Read More: ANRO Stock Falls After Hours On Failed Schizophrenia Study Results

For updates and corrections, email newsroom[at]stocktwits[dot]com.