Amazon to take over Apple’s 20% Globalstar stake in satellite deal

Amazon ↗2.90% will acquire Apple’s ↗0.70% 20% equity and voting interests in Globalstar ↗0.50% via a subsidiary called Grapefruit Acquisition Sub II, per an FCC filing.macrumors
Apple invested $1.1 billion in Globalstar in 2024; it will relinquish its shares once Amazon’s roughly $11.6 billion acquisition closes, expected in 2027.siliconangle
Amazon says its Leo satellite network will continue powering iPhone and Apple Watch features like Emergency SOS and Messages via satellite.macrumors

Amazon to Acquire Apple’s 20% Globalstar Stake as $11.6B Satellite Deal Advances

Amazon.com, Inc. will take over Apple ‘s 20% equity and voting interests in satellite operator Globalstar as part of its $11.57 billion acquisition of the company, according to a Federal Communications Commission filing made public this week.macrumors

FCC Filing Reveals Transfer Structure

The filing, first spotted by PCMag, shows Amazon will establish a subsidiary called Grapefruit Acquisition Sub II, LLC to absorb Globalstar’s operations and acquire Apple’s stake. Apple holds 20% equity and 20% voting interests in Globalstar Licensee LLC, the subsidiary that operates the satellite system powering iPhone features such as Emergency SOS via satellite, Messages via satellite, and Find My.appleinsider

Apple originally invested in Globalstar through a $1.1 billion agreement signed in 2024, which included a $400 million share purchase. Once the Amazon deal closes, Apple will no longer retain those shares or the associated voting rights.siliconangle

Continuity for iPhone Satellite Services

Despite the ownership change, Amazon has committed to maintaining Apple’s existing satellite services. The company said during its April 14 announcement that its Leo satellite network — formerly known as Project Kuiper — will continue to power iPhone and Apple Watch satellite features. Amazon and Apple have also agreed to collaborate on future satellite services running on Amazon’s expanded constellation.reuters

A Challenge to Starlink

Amazon announced the definitive agreement to acquire Globalstar on April 14, offering shareholders $90 per share in a combination of cash and Amazon common stock. The deal integrates Globalstar’s 24-satellite constellation and licensed S-band spectrum into Amazon’s satellite ecosystem, positioning the company as a direct competitor to SpaceX’s Starlink in the emerging direct-to-device connectivity market.satnews

The transaction is expected to close in 2027, pending regulatory approvals and deployment milestones by Globalstar.reuters