Amazon’s Acquisition: Securing Globalstar Stake from Apple

Apple is set to relinquish its 20% ownership in satellite service provider Globalstar once Amazon completes its $11.6 billion acquisition of the company. Instead of holding onto Apple’s former shares and voting rights, a new Amazon subsidiary with a citrus-themed name will take over.

Reports from iDrop News on April 14 revealed that Amazon and Globalstar have struck a multi-billion dollar deal for Amazon to acquire the satellite operator. Amazon plans to utilize Globalstar’s satellites, radio frequency spectrum, and operational expertise to enhance its satellite internet service, Amazon Leo, and introduce Direct-to-Device (D2D) services through its low Earth orbit satellite network.

A hurdle emerged due to Apple’s existing 20% stake in Globalstar, acquired through a $1.5 billion deal in 2024 that included $400 million in shares of the satellite firm. Fortunately, this issue has been resolved, and once the acquisition is finalized, Apple will no longer retain ownership or voting rights.

In a filing with the US Federal Communications Commission (FCC) on May 26, 2026, Amazon and Globalstar are seeking approval for the transfer of licenses and authorizations to facilitate the acquisition. Amazon is forming a subsidiary named “Grapefruit Acquisition Sub II, LLC” to oversee the merger and acquire Apple’s 20% equity and voting interests in Globalstar.

Although the specifics of Apple’s compensation in the deal are undisclosed, Apple and its customers will still have access to Globalstar’s satellite services. The original acquisition announcement confirmed that Apple will continue to receive iPhone and Apple Watch satellite services on the new Amazon Leo network, including features like Emergency SOS and Messages via satellite.

Apple will leverage Globalstar’s satellite constellations and collaborate with Amazon to develop future satellite services utilizing Amazon Leo’s expanded network. This partnership aims to enhance satellite features for Apple users, ensuring connectivity and safety even in remote locations.

Apple is reportedly working on new satellite-based features such as 5G via satellite, Apple Maps via satellite, and sending photos in Messages while connected via satellite. However, Apple may face competition for space on Amazon’s satellite network, as Amazon plans to work with other smartphone manufacturers and mobile carriers in addition to fulfilling commitments to Apple.

In conclusion, the collaboration between Apple and Amazon in the realm of satellite services signifies a promising future for enhanced connectivity and innovative solutions for users. The evolving landscape of satellite technology holds great potential for both companies to deliver cutting-edge services and experiences to consumers worldwide.