April 1 (Reuters) – Amazon is in talks to acquire satellite telecom group Globalstar, as the tech giant ramps up efforts to build its own low-earth-orbit satellite business, the Financial Times reported on Wednesday, citing people familiar with the matter.
Globalstar’s shares, which have more than doubled in market value over the past year, rose 24% to $85 in extended trading. The company’s market cap was $8.81 billion, as of last close.
Covington, Louisiana-headquartered Globalstar is known for its low-earth-orbit satellites. It offers voice, data and asset-tracking services across enterprise, government and consumer markets.
Amazon and Globalstar were still negotiating some of the complexities of a deal after lengthy talks, according to the report.
One complicating factor has been Apple’s ownership of a 20% stake in Globalstar, necessitating negotiations between Amazon and Apple, the report said.
Globalstar did not immediately respond to Reuters’ request for comment, while Amazon declined to comment.
Bloomberg reported in October that Globalstar was exploring a potential sale and had held early discussions with Elon Musk’s SpaceX among other prospective buyers.
(Reporting by Akanksha Khushi in Bengaluru; Editing by Shreya Biswas)
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