Amazon and Globalstar finalized an acquisition deal worth $11 billion. But by purchasing Globalstar, Amazon also had to buy out Apple’s 20% stake in the company. Apple and Globalstar signed a $1.1 billion commitment back in 2024, which included a $400 million share purchase.
Amazon is looking to expand its satellite service business called Amazon Leo. It aims to provide low-latency broadband connectivity through a low-orbit constellation of satellites similar to Starlink. But in order to complete the merger, Amazon needs to buy Apple’s 20% stake in Globalstar by creating a new subsidiary. The subsidiary is called “Grapefruit Acquisition Sub II, LLC,” which looks like a wink to Apple.
Globalstar plays a crucial role in providing satellite services to Apple, so the Emergency SOS and Roadside Assistance features on iPhones and Apple Watches continue working. Amazon promised that the deal won’t affect Apple at all.
In fact, the company said it will continue working with Apple to provide even more services. It will also look to expand its partnerships and provide satellite services to other smartphone manufacturers in the future.