Globalstar shares jumped 13% premarket on Wednesday after reports that Amazon is negotiating to buy the satellite operator. This would allow Amazon to expand its low-Earth-orbit network, increasing competition with SpaceX in the commercial space connectivity market.

A complication is Apple’s 20% stake in Globalstar and its use of the network for iPhone emergency messaging, roadside help, and texting where there is no cell service. For a deal to close, Amazon must address Apple’s position as a major shareholder and business partner. This factor adds complexity and uncertainty to the timeline, which traders should consider when judging deal likelihood.

Globalstar closed Wednesday with a market cap of $8.8 billion, making it a realistic acquisition target for Amazon. The company’s strategic value is much greater than its price. Globalstar operates a fleet of 25 satellites and plans to grow to 48, providing Amazon with ready-made infrastructure instead of having to build from scratch.

This acquisition would support Amazon’s satellite internet project, renamed Amazon Leo from Project Kuiper last year. The project aims to launch over 3,000 satellites by the decade’s end to serve AWS clients and businesses. Buying Globalstar would speed up that effort.

Globalstar’s stock has tripled in the past year, first due to its larger Apple deal and later due to buyout rumors. Wednesday’s premarket jump shows the market is pricing in the chance of a deal. Apple’s dual role as shareholder and partner remains the main factor that could determine if Amazon proceeds with a buyout.