GSAT Stock Surges Overnight: Amazon May Drop Official Takeover Deal Soon After Landing Carrier Deals For Its SpaceX Starlink Rival

• Airlines are emerging as a key battleground in satellite broadband, with Starlink already securing partnerships with several notable firms.
• The potential acquisition comes as Amazon accelerates its satellite rollout to compete with SpaceX’s Starlink.
• Apple’s 20% stake in Globalstar, tied to iPhone satellite connectivity, could influence the takeover outcome.

Shares of Globalstar (GSAT) surged 15% overnight early Tuesday after reports said that Amazon is in advanced talks to acquire the satellite operator in a deal that could be announced as soon as Tuesday, potentially accelerating its effort to scale a broadband network competing with SpaceX’s Starlink.

On Monday, GSAT closed marginally lower, while AMZN rose nearly 1% to its highest level in over two months, extending its winning streak to six straight sessions.

Amazon Speeds Satellite Rollout Amid Starlink Race

The move comes as Amazon steps up its satellite rollout following new airline connectivity partnerships and just weeks before U.S. regulators consider rule changes expected to expand satellite broadband capacity across the country.

However, a final agreement has not yet been reached, and talks could still change or fail, Bloomberg reported, citing people familiar with the matter. 

Amazon’s low-Earth-orbit satellite internet unit recently signed a deal with Delta Air Lines to provide in-flight Wi-Fi on 500 aircraft starting in 2028. The deal followed an earlier deal with JetBlue to deploy the service across part of its fleet beginning in 2027.

Desjardins analyst Benoit Poirier said a potential Amazon-Globalstar deal “likely represents the better outcome for MDA,” referring to a Canadian satellite infrastructure company. He added that Amazon still needs to differentiate its satellite strategy and catch up to SpaceX, particularly because space is not its core business, according to a report by Dow Jones Newswires.

The aviation segment has become an important battleground in the satellite broadband race. Starlink has already secured inflight connectivity partnerships with airlines including United Airlines, Alaska Airlines and Hawaiian Airlines, while Southwest Airlines announced a Starlink agreement last month.

FCC Deadline Pressure Raises Stakes For Amazon Deal

Amazon plans to deploy more than 7,700 satellites as part of its constellation but remains under timeline pressure after requesting an extension from the Federal Communications Commission on a July deployment milestone.

Globalstar already operates an active satellite network focused on device connectivity in low-coverage regions and supports emergency satellite features on Apple iPhones. The company had nearly 800,000 mobile-satellite subscribers as of the end of 2025.

Apple’s relationship with Globalstar could also influence the outcome of a potential takeover. The iPhone maker invested $1.5 billion in the satellite operator in 2024 and holds a 20% stake tied to its device-level satellite connectivity rollout. Apple’s role in Globestar will reportedly give Apple a say in the satellite provider’s acquisition plans.

FCC Move May Unlock 7x Satellite Broadband Capacity

The reported takeover discussions come ahead of an April 30 vote by the FCC on revisions to legacy satellite spectrum-power limits dating back to the 1990s. Regulators expect the changes to increase satellite broadband capacity by as much as 7x the current levels, while improving reliability and speeds, particularly in rural areas.

The proposal follows earlier requests from SpaceX to ease restrictions on next-generation satellite systems.

Starlink Growth Gains Attention Ahead Of SpaceX IPO

Amazon’s interest in Globalstar also highlights the scale advantage SpaceX has already built through Starlink, which now serves more than 10 million users globally and operates 10,000 satellites in orbit. The network is expected to generate over $9 billion in revenue this year and is the primary cash cow for SpaceX ahead of a potential IPO that could value the company at over $1.75 trillion.

Regulators have also approved deployment of another 7,500 second-generation Starlink satellites capable of supporting direct-to-cell connectivity and higher-speed satellite mobile services.

How Do Retail Traders Feel About GSAT, AMZN, SPACEX?

On Stocktwits, retail sentiment around GSAT was ‘bullish’ amid ‘normal’ message volume, while AMZN drew ‘extremely bullish’ sentiment with ‘high’ chatter levels. In contrast, sentiment around SpaceX remained ‘bearish’ amid ‘extremely low’ message volume.

One user said, “I’ll be surprised if SpaceX lets AMZN have it for less than $20B”

Another user expressed optimism ahead of a potential takeover, saying, “Congratulations bulls. We are the dominant satellite cell provider.”

While GSAT has surged by more than 270% over the past year, AMZN has risen by 30%.

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

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