Amazon is reportedly in talks to scoop up Covington-based Globalstar in a roughly $9 billion deal that would pull the local satellite operator directly into the e-commerce giant’s low-Earth-orbit plans. The report jolted markets on Wednesday and suddenly pushed the small Louisiana company into the national spotlight. For Covington, the chatter is a reminder that a quiet local facility can overnight become a key piece of a global technology race.
The Financial Times first surfaced the negotiations and wire services quickly spread the story, while local outlets echoed the same price tag and cautioned that talks were still in progress. As reported by New Orleans CityBusiness, people familiar with the discussions said Amazon and Globalstar are still working through complex pieces of a potential agreement. Globalstar and Amazon did not immediately respond to requests for comment.
What Globalstar Does And The Covington Connection
Globalstar runs a network of low-Earth-orbit satellites that deliver voice, data and asset-tracking services to enterprise, government and consumer clients, and the company lists its principal executive office in Covington, Louisiana. Those details are laid out in the company’s filings with the U.S. Securities and Exchange Commission. In recent years, Globalstar has boosted its L-band capacity and upgraded ground infrastructure, moves that helped turn it into a more appealing target for strategic buyers.
Market Reaction And Company Numbers
Investors did not wait around. Globalstar shares leapt by double-digit percentages on the takeover buzz, lifting the company’s market value toward roughly $8.8 billion, and the stock has more than doubled over the past year, according to Yahoo Finance. Investing.com also highlighted the surge to multi-year highs as the acquisition speculation swirled, while traders briefly nudged Amazon’s own shares lower as they digested the headlines.
Apple's Stake Complicates A Sale
One wrinkle in any sale is Apple’s presence on the shareholder list. The tech giant holds roughly a 20% stake in Globalstar after a 2024 investment that industry reporting says was worth about $1.5 billion, according to The Irish Times. That ownership, along with capacity commitments tied to it, means any buyer would likely have to sit down with Apple to sort out reserved network rights. The stake adds another layer of negotiation and timing to what might otherwise be a straightforward acquisition.
Leo Vs. Starlink: The Bigger Picture
The reported talks come as Amazon pushes ahead with its Leo constellation project. The company has launched roughly 180 satellites so far and intends to field a much larger fleet, while SpaceX’s Starlink already has many thousands of satellites in orbit and serves millions of users, according to market reporting. That gap helps explain why Amazon might prefer to buy an operator that already controls spectrum and ground infrastructure rather than try to close the distance using new launches alone. The growing strategic value of satellite broadband has turned operator ownership, spectrum rights and partnership deals into critical bargaining chips, according to Yahoo Finance.
What Comes Next
Even if Amazon and Globalstar settle on a price and basic terms, any acquisition would still have to pass through detailed negotiations, shareholder approvals and the usual regulatory checks before it could close. For now, the story remains market-moving speculation. Local leaders in Covington and company insiders will be watching for formal announcements, fresh SEC filings and any statement from Apple that might clarify how its stake would be handled. If a deal moves forward, the narrative will quickly shift from rumor to the concrete questions of ownership, jobs and how Globalstar’s network would be slotted into Amazon’s broader plans.
