According to DCD, Elon Musk’s SpaceX is exploring a potential acquisition of satellite communications company Globalstar, causing the Louisiana-based company’s shares to rise 24 percent following the report. The discussions are in early stages, with Globalstar receiving assistance from an unnamed investment bank and the possibility remaining that the company could stay independent. Apple has significant involvement through its $1.5 billion investment in Globalstar last year, which allocated 85 percent of Globalstar’s network capacity to Apple’s iPhone communication services. Globalstar operates a 31-satellite low-Earth orbit constellation with 26 additional satellites planned for launch by SpaceX, and previous reports suggested the company sought over $10 billion in sale discussions, well above its $5.3 billion market cap at the time. This potential acquisition represents Musk’s latest move to expand SpaceX’s terrestrial communications footprint.
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The Strategic Chess Match Behind the Deal
This potential acquisition represents far more than just another corporate transaction—it’s a strategic power play in the emerging battle for satellite-to-smartphone dominance. SpaceX’s interest in Globalstar comes three years after Musk reportedly pitched Apple on using Starlink infrastructure, only to see Apple choose Globalstar instead. Now, by potentially acquiring Globalstar, Musk could effectively control the very infrastructure Apple bet $1.5 billion on, giving SpaceX tremendous leverage in future negotiations. This isn’t just about spectrum assets or satellite capacity—it’s about controlling the gateway between space-based connectivity and the billions of smartphones in consumers’ pockets worldwide.
Why Satellite-to-Smartphone is the Next Frontier
The satellite-to-smartphone market represents one of the most promising growth areas in telecommunications, with potential to fundamentally reshape how we think about connectivity. Unlike traditional satellite phones that required specialized hardware, this new generation of technology enables existing smartphones to connect directly to satellites for emergency messaging, basic data services, and eventually voice calls. The market contains several competitors including AST SpaceMobile, Skylo, and Lynk, but Globalstar’s existing infrastructure and Apple partnership give it a significant head start. For SpaceX, acquiring Globalstar would provide immediate operational capabilities rather than building from scratch, accelerating their entry into a market that could eventually serve hundreds of millions of users.
The Regulatory Hurdles Ahead
Any acquisition of this magnitude will face intense regulatory scrutiny across multiple jurisdictions. SpaceX already operates the world’s largest satellite constellation with Starlink, and adding Globalstar’s assets would significantly consolidate control over low-Earth orbit communications infrastructure. Regulators in the United States, Europe, and other markets will likely examine whether such consolidation could harm competition in the emerging direct-to-device market. Additionally, spectrum rights—the radio frequencies that enable satellite communications—are heavily regulated national assets. Transferring control of Globalstar’s spectrum licenses to SpaceX would require approval from telecommunications authorities worldwide, creating a complex web of regulatory challenges that could delay or even prevent the deal from closing.
Long-Term Implications for Telecommunications
If successful, this acquisition could accelerate the convergence of terrestrial and satellite networks into a seamless connectivity fabric. We’re moving toward a future where users won’t need to think about whether they’re connected via cellular, Wi-Fi, or satellite—the device will automatically select the best available connection. SpaceX’s potential control of both Starlink and Globalstar assets would position them as a wholesale provider to mobile network operators worldwide, essentially becoming the “backbone provider” for global connectivity. This aligns with comments from SpaceX President Gwynne Shotwell about providing wholesale capacity to telecom partners. The long-term play appears to be creating an integrated space-terrestrial network that could eventually challenge traditional telecom infrastructure models.
What This Means for Satellite Communications Investors
The satellite communications sector is entering a period of rapid consolidation and strategic repositioning. SpaceX’s recent $17 billion agreement with Echostar Corporation to purchase terrestrial spectrum assets, combined with their 2021 acquisition of IoT-satellite firm Swarm, demonstrates a clear pattern of vertical integration. For investors, this suggests that pure-play satellite companies may become acquisition targets as larger players seek to build comprehensive connectivity solutions. The valuation dynamics are particularly interesting—Globalstar’s market cap surged on the news, but the $10 billion price tag previously discussed would represent a significant premium, suggesting that strategic assets in this space command substantial multiples due to their scarcity and strategic importance.
