The $11 Billion Deal and Apple’s Involuntary Exit
Amazon has closed an $11 billion acquisition agreement with Globalstar, a satellite communications company. The deal includes purchasing Apple’s 20 percent stake in Globalstar, a requirement that emerged from a prior agreement between Apple and Globalstar.
In 2024, Apple and Globalstar signed a $1.1 billion commitment that involved a $400 million share purchase. That earlier transaction made Apple a minority shareholder. When Amazon moved to buy Globalstar, it had to absorb Apple’s shares as part of the merger.
The acquisition is structured through a newly formed subsidiary named Grapefruit Acquisition Sub II, LLC. Observers note the name appears to be a playful nod to Apple, known for its fruit‑inspired branding. The move gives Amazon full control over Globalstar’s spectrum licenses, satellite fleet, and ground infrastructure.
What Is Amazon Leo and How Does It Compete With Starlink?
Amazon bought Globalstar to build its own satellite internet service called Amazon Leo. The goal is to use low‑orbit satellites to deliver fast, low‑lag internet to places where cable and fiber do not reach. Owning Globalstar gives Amazon a huge head start. The service will likely connect with AWS and other Amazon products. Amazon Leo aims to serve rural areas and take on the big players in global broadband.
Apple’s Emergency Services Remain Uninterrupted
Globalstar currently powers critical satellite features on Apple devices, including Emergency SOS and Roadside Assistance on iPhones and Apple Watches. These features allow users to contact emergency services or request help when cellular and Wi‑Fi networks are unavailable.
Amazon has publicly committed that Apple’s services will not be disrupted by the acquisition. The company stated it will continue working with Apple to maintain and potentially enhance these features. This assurance is crucial for millions of Apple users who rely on satellite connectivity in emergency situations. Amazon’s promise helps avoid consumer confusion or service gaps during the transition.
Will Other Phone Brands Get Amazon Satellite Service?
Amazon wants to bring satellite connectivity to more than just Apple. The company plans to partner with other smartphone makers and offer satellite features across different brands. Think of Amazon becoming a wholesale provider of space‑based communication, similar to how AWS provides cloud computing.
By using Globalstar’s network and Amazon’s money, the goal is to make direct‑to‑device satellite services common so emergency messaging and basic connectivity work on almost any phone, no matter the brand.
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