Amazon Set to Acquire Company Valued at Rp152 Trillion to Compete with Starlink

Amazon is reportedly exploring the acquisition of Globalstar as part of a major strategy to strengthen its satellite-based internet business. This step is considered crucial to catch up with SpaceX, which currently dominates the market through its Starlink service. The discussions between the two companies are ongoing but have not yet reached a final agreement. One of the main obstacles in the negotiations is Apple’s involvement, which holds about 20% of shares in Globalstar. With that position, Amazon must also negotiate with Apple before the acquisition can be realised. According to Ars Technica on Sunday (5/4/2025), Globalstar currently has a market capitalisation of around US$9 billion, equivalent to Rp152.1 trillion. The company’s value has surged sharply over the past year, with its shares rising by about 230%, in line with growing investor interest in the low-Earth orbit satellite industry. Interest in Globalstar is not only from Amazon. Previously, the company was also reported to have held initial talks with SpaceX. Apple itself plays a significant role in Globalstar’s business. In 2024, Apple invested US$1.5 billion, or about Rp25.35 trillion, to acquire 20% of the company’s shares. As part of the deal, around 85% of Globalstar’s network capacity is allocated to support Apple’s satellite communication services, such as the emergency messaging feature on iPhones when there is no cellular network. On the other hand, Amazon is also developing its own satellite project called Kuiper, a low-Earth orbit satellite network to provide global internet services. However, the progress of this project is still far behind Starlink. Currently, Amazon operates only about 180 satellites in orbit, while SpaceX has more than 10,000 active satellites. To catch up, Amazon even requested an extension from US regulators to meet its target of launching 1,600 satellites. Amazon aims to have around 700 satellites in orbit by mid-year. However, the company acknowledges that limited launch capacity is one of the main hurdles in developing the network. As part of its business expansion, Amazon has also partnered with airlines such as JetBlue and Delta to provide in-flight internet services, scheduled to begin in 2027 and 2028. In terms of financial performance, Globalstar recorded annual revenue of US$273 million, or about Rp4.61 trillion. This figure grew by around 9% compared to the previous year. The company also began recording operational profit of US$7.4 million, or about Rp125.06 billion, after previously incurring a slight loss.