E-commerce giant Amazon is reportedly pursuing an acquisition of satellite telecommunications company Globalstar in a deal that could be worth nearly $9 billion, according to a Wednesday report from the Financial Times.
The news sent Globalstar’s stock price surging 24% to $85 per share during after-hours trading. The satellite company’s market valuation stood at $8.81 billion as of the previous trading session’s close.
Sources familiar with the discussions told the Financial Times that both companies continue to work through complicated aspects of the potential acquisition after extended negotiations.
The deal faces a significant hurdle due to Apple’s 20% ownership position in Globalstar, which has required Amazon to engage in discussions with the iPhone maker as part of the acquisition process, according to the report.
