Amazon is acquiring Globalstar and taking over Apple's stake in the satellite company through a merger structure. The tech giant will create a subsidiary called Grapefruit Acquisition Sub II to absorb Globalstar's operations, then acquire Apple's equity position. This move consolidates satellite infrastructure under Amazon's expanding LEO network strategy.

Apple originally invested $450 million in Globalstar back in 2022 to fund satellite buildout for Emergency SOS via satellite features. In return, Apple secured 20 percent equity and 85 percent of Globalstar's network capacity in Globalstar Licensee LLC, which operates the satellite system delivering connectivity to iPhone users in the U.S.

The $11.57 billion acquisition will see Amazon's LEO satellite network power existing iPhone and Apple Watch satellite services including Emergency SOS, Messages via satellite, Find My, and Roadside Assistance via satellite. Both companies will collaborate on future satellite services running on Amazon's expanded network infrastructure.

Apple stands to profit from its initial investment while partnering with a more established satellite operator. The deal is expected to close in 2027 pending regulatory approval, consolidating satellite communications capabilities between two major tech players.