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Amazon to Acquire Apple's $1.1B Globalstar Stake in $11.6B Deal

9to5Mac •
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Amazon has filed with the FCC to take over Apple's 20% equity stake in Globalstar as part of its broader acquisition of the satellite connectivity company. The move comes after Amazon's initial announcement last month that it would purchase Globalstar outright, though the exact timeline remains unclear.

Apple originally invested $300 million in Globalstar to support Emergency SOS via satellite functionality on iPhones, then expanded that commitment to $1.1 billion in late 2024. Under that expanded deal, Globalstar dedicated 85% of its satellite capacity to Apple while issuing 400,000 Class B shares representing the 20% ownership stake.

The Amazon acquisition will proceed through Grapefruit Acquisition Sub II, LLC, which will absorb Apple's shares immediately after the first phase of the merger closes. Amazon argues this consolidation will enable it to build a next-generation global direct-to-device network serving smartphones across multiple carriers, rather than remaining exclusive to Apple's ecosystem.

Globalstar's existing satellite services for iPhone users will continue uninterrupted, according to Amazon's filing. This acquisition positions Amazon to compete directly in the satellite connectivity market while inheriting Apple's substantial infrastructure investment.