Amazon.com, Inc. (AMZN.US) plans to acquire Globalstar, Inc. (GSAT.US) for 9 billion dollars in a challenge to SpaceX, with Apple Inc. holding a 20% stake as the biggest variable.

According to reports, technology giant Amazon.com, Inc. (AMZN.US) is in deep discussions with satellite communication operator Globalstar, Inc. (GSAT.US) regarding an acquisition deal, aimed at accelerating its own low Earth orbit satellite business layout to directly compete with SpaceX's Starlink. This potential deal is estimated to be worth as much as $9 billion, and in the increasingly intense global low orbit satellite internet competition, the market generally sees this as a key accelerator for Amazon.com, Inc.'s "Leo" project (formerly known as "Project Kuiper"). Headquartered in Covington, Louisiana, Globalstar, Inc. is known for its low Earth orbit communication satellites, providing voice, data, and asset tracking services to enterprise, government, and consumer markets. The company's stock has doubled in value over the past year, and spurred by these major acquisition rumors, its stock soared over 20% in after-hours trading on Wednesday, reaching a high of $85 per share, reflecting the market's high attention and expectations for this strategic acquisition. Despite Amazon.com, Inc. showing strong acquisition intentions, the progress of this deal still faces a complex game, especially with tech giant Apple Inc. (AAPL.US) playing a crucial role. As a long-term deep collaboration partner of Globalstar, Inc., Apple Inc. currently holds about 20% of the company after investing $1.5 billion in 2024. More crucially, 85% of Globalstar, Inc.'s existing satellite capacity is exclusively locked by Apple Inc. for supporting the iPhone's "satellite emergency distress" function. This means that for Amazon.com, Inc. to successfully acquire Globalstar, Inc., it not only needs to overcome legal and financial hurdles, but also reach a highly rare compromise with competitor Apple Inc. on infrastructure sharing and future technological paths. In terms of industry landscape, Amazon.com, Inc.'s move reflects its urgent attitude to catch up with SpaceX's Starlink. Compared to Starlink's mature network of over 9,500 satellites, Amazon.com, Inc.'s Kuiper plan has only deployed 180 satellites so far and has been hampered by a lack of launch capacity and deployment delays. By acquiring Globalstar, Inc., which has mature orbital licensing and ground station facilities, Amazon.com, Inc. can significantly shorten the construction period of its network coverage. However, market analysts have also pointed out that in the past year, Globalstar, Inc. has also been rumored to be in talks with other potential buyers, including Elon Musk's SpaceX. The current situation has made Globalstar, Inc. a core player in the satellite communication field. For Amazon.com, Inc., this is not just an expansion of hardware facilities, but also a strategic battle for satellite spectrum resources and global low Earth orbit communication discourse power. If this $9 billion deal is finalized, it will completely reshape the current satellite internet landscape dominated by SpaceX alone, and may prompt a unprecedented deep competition and cooperation between Apple Inc. and Amazon.com, Inc. in the field of deep space communication. It is worth noting that according to sources, SpaceX has submitted a confidential application for an initial public offering (IPO). Previous reports have stated that SpaceX plans to raise between $40 billion and $80 billion through the IPO, with a target valuation of up to $1.75 trillion. This filing makes the company likely to go public as early as July this year, a timeline consistent with Musk's previous disclosures to internal sources. As of now, both Amazon.com, Inc. and Globalstar, Inc. are maintaining silence and refusing to make official comments on these rumors. At the time of writing, Globalstar, Inc.'s after-hours stock price has fallen back to 18.02%, trading at $80.85 per share.