Amazon to Acquire Apple's Globalstar Stake in Satellite Deal - MacRumors
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Amazon to Acquire Apple's Globalstar Stake in Satellite Deal

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Amazon is acquiring Apple satellite provider Globalstar, and it has worked out a deal to take over Apple's stake in the satellite company.

iPhone Satellite Feature
According to an FCC filing noticed by PCMag, Amazon is initiating a 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 has 20 percent equity and 20 percent voting interests in Globalstar Licensee LLC, a Globalstar subsidiary that operates the satellite system that delivers satellite connectivity to iPhone users in the U.S. Apple invested $450 million in Globalstar back in 2022 to fund Globalstar's satellite buildout for the Emergency SOS via satellite feature. Apple received 20 percent equity and 85 percent of Globalstar's network capacity in return.

Apple's Globalstar stake required Apple and Amazon to enter into separate negotiations, but the two companies worked out a deal. Amazon's Leo satellite network will power existing iPhone and Apple Watch satellite features like Emergency SOS, Messages via satellite, Find My, and Roadside Assistance via satellite. Apple stands to make more money than it invested, and has secured a partnership with a better-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 Globalstar purchase is said to be worth around $11.57 billion, and it is expected to close in 2027 as long as it earns regulatory approval.

Tags: Amazon, Globalstar

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Top Rated Comments

K
Kar98
5 weeks ago
At one point soon, those giga corps need to be broken up again.
Score: 26 Votes (Like | Disagree)
C
CoMoMacUser
5 weeks ago
I want to hear the story behind the Grapefruit Acquisition Sub II name.
Score: 23 Votes (Like | Disagree)
M4irmidnight Avatar
M4irmidnight
5 weeks ago

Emergency services are highly important. I hope Jeff Bozos doesn't do anything to maximize profits by cutting back on the emergency service-related functionality for iPhones that Apple already has and has already planned. I don't trust Jeff Bozos because he is extremely greedy, even more so than Tim Crook.
Are you a prime member?

Yes? Then you live.
No? Too bad , so sad.
Score: 19 Votes (Like | Disagree)
H
hieranonymous
5 weeks ago
Elon’s gonna pitch a fit. He’s been angling for Apple to use Starlink.
Score: 14 Votes (Like | Disagree)
H
HaHaRich!
5 weeks ago

I don’t understand why Amazon would want to buy this, if Apple is using 85% capacity what does Amazon have to gain here
There’s a line in the middle of the article you missed “Apple stands to make more money than it invested, and has secured a partnership with a better-established satellite operator.” Which is kind of misleading, as they are signed with Amazon Leo now: Amazon’s Leo satellite group already has over 180 satalites before adding Globalstar’s 48 to the list. So, even if Apple was using all 85% of the Globalstar capacity they had secured, they likely just quadrupled the available “bandwidth” and got their money back AND was paid almost another $1.5B by Amazon. Plus, Amazon is rapidly going to grow that number, telling their investors to expect a few thousand satellites in the next couple years.
Score: 10 Votes (Like | Disagree)
ThomasJL Avatar
ThomasJL
5 weeks ago
Emergency services are highly important. I hope Jeff Bozos doesn't do anything to maximize profits by cutting back on the emergency service-related functionality for iPhones that Apple already has and has already planned. I don't trust Jeff Bozos because he is extremely greedy, even more so than Tim Crook.
Score: 8 Votes (Like | Disagree)
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