Amazon and Globalstar have finalized an acquisition deal valued at $11 billion. As part of this agreement, Amazon has also acquired Apple's 20% stake in Globalstar. This stake was established following a $1.1 billion commitment between Apple and Globalstar in 2024, which included a $400 million share purchase.
As part of its strategy to expand its satellite service, Amazon is developing a system called Amazon Leo, aimed at providing low-latency broadband connectivity through a low-orbit satellite constellation, similar to Starlink. To finalize this merger, Amazon established a new subsidiary named "Grapefruit Acquisition Sub II, LLC" to facilitate the buyout of Apple's stake.
Globalstar is essential for delivering satellite services to Apple, ensuring that the Emergency SOS and Roadside Assistance features on iPhones and Apple Watches remain functional. Amazon has assured that this acquisition will not disrupt Apple's services.
Furthermore, Amazon plans to continue collaborating with Apple to enhance service offerings and intends to explore partnerships with other smartphone manufacturers in the future.
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