Key TakeawaysShares of Globalstar surged more than 15% in extended trading after the Financial Times revealed Amazon is negotiating to buy the satellite communications provider.Discussions between the two companies are continuing, though several challenges persist despite extended negotiations.Apple’s 20% ownership stake in Globalstar — obtained through a $1.5 billion investment last year — presents a significant obstacle in the transaction.The acquisition would bolster Amazon Leo, the company’s emerging satellite internet venture, which has deployed approximately 200 satellites since last April.Earlier in October, Bloomberg indicated Globalstar was considering a sale, with preliminary discussions involving SpaceX.Globalstar (GSAT) shares opened approximately 12% higher following the news, with after-hours trading showing gains exceeding 15%. Meanwhile, Amazon (AMZN) declined 2.38% during extended trading.Globalstar, Inc., GSATAmazon refused to provide comment. Globalstar representatives did not respond immediately to inquiries.The Financial Times published the report, referencing sources with knowledge of the situation. According to the publication, both parties have engaged in extended negotiations but continue to address multiple transaction complications.$AMZN is in talks to acquire $GSAT. Amazon is making a heavy push to scale Project Kuiper and directly challenge Starlink. Buying Globalstar gives them an immediate, massive foothold in Low Earth Orbit (LEO) connectivity.$GSAT shares jumped over 15% on the news, pushing the… pic.twitter.com/mrlD32lcKB— Karol Kozicki (@k2__investment) April 1, 2026Among these obstacles is Apple’s substantial stake in Globalstar. The tech giant secured a 20% ownership position in 2024 through a $1.5 billion capital injection. This investment focused on expanding Globalstar’s satellite network and terrestrial infrastructure. Any potential Amazon purchase would need to address this pre-existing partnership.Amazon’s Satellite Internet ExpansionAmazon has been developing its proprietary satellite internet platform, known as Amazon Leo. Since April of last year, the e-commerce giant has deployed around 200 satellites to low Earth orbit, with plans to begin commercial operations before year’s end.The company’s ambitious blueprint calls for a constellation comprising approximately 7,700 satellites. However, the project has encountered setbacks. This past January, Amazon petitioned the Federal Communications Commission for an extension on a requirement to deploy roughly 1,600 satellites by the July 2026 deadline.A Globalstar acquisition would provide Amazon with substantial advantages — including established satellite assets and valuable spectrum licenses — as it works to narrow the competitive divide with SpaceX.SpaceX’s Starlink dominates the satellite internet sector, operating more than 10,000 satellites and serving over 9 million customers. Amazon currently trails far behind, and this transaction could significantly expedite its market position.Globalstar Previously Considered Strategic OptionsThis marks not the first occasion Globalstar has been linked to acquisition speculation. Last October, Bloomberg revealed the company was evaluating a potential transaction, including preliminary talks with Elon Musk’s SpaceX.Those discussions ultimately stalled. The current Amazon negotiations seem more substantive, although no final agreement has been signed.Globalstar delivers satellite voice and data communications services and gained consumer recognition through its Apple collaboration, which powers the Emergency SOS via satellite capability on iPhone devices.This Apple connection adds considerable complexity beyond a typical acquisition. Amazon would essentially be purchasing a firm where one of its primary technology competitors maintains a 20% ownership interest.Currently, negotiations continue between both parties. The Financial Times emphasized that despite prolonged discussions, multiple complex issues require resolution before any transaction can be completed.The post Globalstar (GSAT) Stock Jumps 15% Amid Amazon Takeover Discussions appeared first on Blockonomi.