Globalstar Stock Sees Best Day In Nearly A Year On Rumored Buyout By SpaceX
A Bloomberg News report, citing people familiar with the matter, said the satellite firm is working with an investment bank to assist with the sales process.
- About 5.5 million shares of Globalstar changed hands on Thursday, nearly five times its average trading volume.
- Some retail traders on Stocktwits speculated whether Amazon could emerge as another potential buyer.
- The firm already has a long-standing relationship with the Elon Musk-led company, with SpaceX’s Falcon 9 rockets helping its satellites reach space.
Globalstar stock (GSAT) jumped over 22% on Thursday, marking the biggest single-day jump since last November, and rose over 2% in extended trading after a report said that the company is exploring a sale and talking to SpaceX among potential suitors.
A Bloomberg News report, citing people familiar with the matter, stated that the satellite firm is working with an investment bank to assist it in the process. However, the report also stated that another possible buyer might emerge or the firm may still choose to remain independent.
About 5.5 million shares of Globalstar changed hands on Thursday, nearly five times its average trading volume. As per the report, Apple will likely have a role in any future deal as it acquired a 20% stake in the company last year by investing $1.5 billion. The iPhone maker uses a Globalstar service that lets customers send texts and contact emergency responders when out of cellular range. The Information earlier reported that Globalstar Chair James Monroe informed associates that the company was potentially for sale for more than $10 billion.
Retail Speculates Whether Amazon Might Enter The Pursuit
On Stocktwits, retail sentiment about Globalstar jumped to ‘extremely bullish’ territory from ‘bullish’ a day ago, while retail message volume surged 755%.
“Standby for the wildest week we’ve ever seen,” one user said, noting that the firm’s earnings report is just a week away.
“My gut feeling is that SpaceX and Apple have already been working out a deal behind the scenes, but it’s the unknowns like an Amazon bid that could turn this into a bidding war,” another user said.
Why SpaceX Could Be Interested?
Globalstar and its peers, such as AST SpaceMobile, are direct competitors of SpaceX’s Starlink in the fast-growing satellite communications market. These operators, including Amazon’s Blue Origin, are building large satellite constellations in low Earth orbit to provide internet access, offering an alternative to fiber-optic solutions.
The firm already has a long-standing relationship with the Elon Musk-led company, with SpaceX’s Falcon 9 rockets helping its satellites reach space. Starlink already has over 7 million customers in more than 150 countries and is rapidly expanding its global presence, with thousands of satellites already in orbit.
Globalstar stock has jumped over 60% this year, but lags the 263% surge in rival AST SpaceMobile’s stock.
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