Within a single day, Amazon finds itself navigating two starkly contrasting realities: escalating physical attacks on its cloud infrastructure and advanced negotiations for a multi-billion dollar acquisition to dominate space-based internet.
The Satellite Arena Heats Up
According to a report by the Financial Times, Amazon is in talks to acquire satellite operator Globalstar in a deal that would value the company at approximately $9 billion. This strategic move aims to bolster Amazon’s own low-Earth orbit (LEO) satellite internet service, Project Kuiper, positioning it as a direct competitor to SpaceX’s Starlink network. The news propelled Globalstar’s shares to an 18-year high, with pre-market trading showing a 12.3% gain. Globalstar’s appeal lies significantly in its coveted L-Band spectrum and its established operational infrastructure.
The potential acquisition is complicated by Apple’s existing 20% stake in Globalstar, stemming from a $1.5 billion investment made in 2024. Apple currently utilizes 85% of Globalstar’s network capacity for iPhone features like Emergency SOS and satellite messaging. Should Amazon proceed, the future of this arrangement remains unclear and is expected to necessitate separate discussions between the two technology giants.
Amazon’s own satellite ambitions are already underway. Since April of last year, the company has launched roughly 200 satellites into low-Earth orbit, with an ultimate constellation of about 7,700 planned. While a commercial service launch is targeted for this year, Amazon requested an extension from the FCC in January, seeking more time to meet a regulatory requirement to launch nearly 1,600 satellites by July 2026.
Cloud Infrastructure Under Fire
Simultaneously, Amazon Web Services (AWS) is confronting repeated military strikes in the Middle East. On Wednesday, an Iranian attack targeted Bahrain, damaging the headquarters of Batelco, the nation’s leading telecommunications provider which operates AWS systems in the region. Bahrain’s interior ministry confirmed a fire resulting from the assault.
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This incident marks the fourth Iranian strike on AWS infrastructure in the Middle East within approximately three weeks—three in Bahrain and one in the United Arab Emirates. These represent the first known military attacks on the data centers of a U.S. hyperscale cloud provider.
The operational impact has been severe. Previous attacks disrupted services for regional banks, payment systems, delivery applications, and business software. Current status reports indicate that in the UAE, 25 AWS services remain impaired and a further 34 are experiencing issues; only three out of 51 affected services are listed as fully restored.
Iranian state media justified the Bahrain strike as an effort to expose the data centers’ role in supporting “military and intelligence activities of the enemy.” The U.S. military does indeed use AWS for certain workloads, including intelligence functions powered by Anthropic’s AI model, Claude.
Market Reaction and Strategic Crossroads
Amazon’s stock currently trades about 6% below its level at the start of the year, reflecting the persistent pressures from the Middle East escalation. The company is effectively operating on two fronts. One involves a tangible geopolitical threat that is already forcing AWS customers to relocate workloads and secure data from the region. The other is a high-stakes strategic bet: a successful acquisition of Globalstar would allow Amazon to close a significant gap in the satellite race. SpaceX reportedly operates over 10,000 satellites and is preparing for what could be the largest initial public offering in history.
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