Amazon is acquiring Apple satellite provider Globalstar and has reached a deal to take over Apple’s stake in the satellite company.
According to an FCC filing noted by PCMagAmazon launches merger structure. It will create a new subsidiary called Grapefruit Acquisition Sub II to absorb Globalstar’s operations, and then the new subsidiary will acquire Apple’s equity.
Apple owns 20% equity and 20% voting rights in Globalstar Licensee LLC, a subsidiary of Globalstar that operates the satellite system that provides satellite connectivity to iPhone users in the United States. Apple invested $450 million in Globalstar in 2022 to finance the construction of Globalstar’s satellite for emergency SOS function via satellite. Apple received in exchange 20 percent of the equity and 85 percent of the network capacity of Globalstar.
Apple’s stake in Globalstar forced Apple and Amazon to enter into separate negotiations, but the two companies reached an agreement. Amazon’s Leo satellite network will power existing satellite features on iPhone and Apple Watch such as Emergency SOS, Satellite Messages, Find My and Satellite Roadside Assistance. Apple is expected to make more money than it invested and has partnered with a more established satellite operator.
Amazon will support iPhone and Apple Watch models that use Globalstar’s low-Earth orbit constellation, and the two companies will work together on future satellite services running on Amazon’s expanded Leo network.
Amazon’s purchase of Globalstar would be worth approximately $11.57 billion and is expected to close in 2027, subject to regulatory approval.
Popular stories
The iPhone 18 Pro will launch later this year with these 10 new features
While the iPhone 18 Pro and iPhone 18 Pro Max won’t launch until September, there are already plenty of rumors circulating about the devices. It was initially reported that the iPhone 18 Pro models would have Face ID entirely under the display, with only a front-facing camera visible in the upper left corner of the screen. However, the latest rumors indicate that only one Face ID component will be moved under…
watchOS 27 will add these new features to your Apple Watch
Apple will unveil watchOS 27 during its WWDC 2026 keynote on Monday, June 8, and a handful of new features have already been rumored. The first developer beta of watchOS 27 should be available immediately after the keynote, and a public beta typically follows in July. The update is expected to be released to all users with a compatible Apple Watch model in September. Below we recap watchOS…
Apple prepares the “most significant redesign in the history of the iPhone”
Apple is reportedly planning to unveil its first foldable iPhone in September this year – it could be called “iPhone Ultra” – and expectations are high. In his Power On newsletter, Bloomberg’s Mark Gurman said the foldable iPhone would be “the most significant redesign in iPhone history.” “The iPhone 4, iPhone 6 and iPhone X were clearly a big deal, but this is a completely new design,” he said…
