Amazon to Acquire Globalstar for $11.5 B

Amazon is acquiring satellite communications provider Globalstar in a deal valued at approximately $11.5 billion, a move that will see the e-commerce giant take over Apple’s 20 percent stake in the company. The acquisition, detailed in a recent filing with the Federal Communications Commission, aims to accelerate Amazon’s expansion into satellite internet and direct-to-device communication services.

As part of the agreement, Amazon will create a new subsidiary, Grapefruit Acquisition Sub II, LLC, to conduct the merger. This entity will acquire Apple’s equity and voting interests in Globalstar, which the iPhone maker secured in 2024 as part of its own investment. The transaction is expected to close in 2027 pending regulatory approvals.

Despite the ownership change, Amazon has committed to maintaining and improving satellite services for current and future Apple devices. Features such as Emergency SOS via Satellite, Messages via Satellite, and Roadside Assistance, which have been powered by Globalstar’s network since the iPhone 14, will continue. Amazon stated it will work with Apple on future satellite-based services.

The strategic acquisition is positioned to enhance Amazon’s...