Amazon finalized an $11 billion acquisition of Globalstar, buying out Apple's 20% stake in the company. To complete the deal, Amazon created a subsidiary called "Grapefruit Acquisition Sub II, LLC." This move expands Amazon's satellite ambitions while maintaining its relationship with Apple, which had invested $1.1 billion in Globalstar through a 2024 commitment including a $400 million share purchase.

Globalstar provides crucial satellite connectivity for Apple's Emergency SOS and Roadside Assistance features on iPhones and Apple Watches. Amazon explicitly stated the deal won't affect these critical services. The tech giant promised to continue working with Apple and expand satellite partnerships to other smartphone manufacturers. Apple's significant stake represents a substantial portion of Globalstar's ownership structure.

Amazon aims to develop its Amazon Leo satellite service to provide low-latency broadband through a low-orbit constellation similar to Starlink. The acquisition positions Amazon to compete directly with SpaceX in the satellite internet market. Apple continues to rely on Globalstar infrastructure while Amazon seeks to expand its presence in the rapidly growing satellite connectivity space.