Amazon and Globalstar have finalized an acquisition deal valued at $11 billion. As part of this deal, Amazon also acquired Apple's 20% stake in Globalstar. In 2024, Apple and Globalstar had formed a $1.1 billion partnership, which included a $400 million investment from Apple.
This acquisition aligns with Amazon's strategy to enhance its satellite service, Amazon Leo, designed to deliver low-latency broadband connectivity via a low-orbit constellation of satellites, similar to SpaceX's Starlink. To facilitate this merger, Amazon established a new subsidiary named "Grapefruit Acquisition Sub II, LLC," a nod to Apple.
Globalstar is integral to Apple's satellite communications, enabling features such as Emergency SOS and Roadside Assistance on iPhones and Apple Watches, and Amazon has assured that the deal will not disrupt these services. In fact, the company intends to continue collaborating with Apple to enhance existing services and explore future partnerships with other smartphone manufacturers.
