BREAKINGVIEWS-Satellite mania approaches $9 bln escape velocity

By Robert Cyran

NEW YORK, April 2 (Reuters Breakingviews) - Through the 2000s space frenzy, attempts to recycle airwaves and an iPhone partnership, Globalstar rode waves of hype that fizzled. Now, as SpaceX eyes a $1.8 trln listing and fresh euphoria rises, it may sell to Amazon. History warns that sky-high ambitions tend to burn up.

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Amazon.com is in talks to buy Globalstar, the Financial Times reported on April 1. The provider of satellite communication services had a market capitalization of $9 billion prior to the news.

Amazon is building a network of satellites, and plans to place over 3,000 in low earth orbit. Rival Starlink, the satellite network owned by SpaceX, has about 10,000 satellites in orbit.

Apple owns a 20% stake in Globalstar after investing $1.5 billion in the company to help expand satellite services for iPhones. Globalstar said it would allocate 85% of its network capacity to Apple in the agreement.