Amazon takes over Apple's shares in satellite provider Globalstar

In April, Amazon announced its intention to acquire satellite communications provider Globalstar to expand its low-earth orbit (LEO) satellite network with Direct-to-Device (D2D) services and extend mobile coverage to customers outside the reach of terrestrial networks. At the time, it was suggested that Apple, which uses satellite communication for its iPhone, would initially retain its stake in Globalstar. Now it is confirmed: the 20 percent stake held by the iPhone maker is also going to Amazon.

Globalstar goes entirely to Amazon

As PCMag first discovered, Amazon has filed an “Application for Consent to Assignment and Transfer of Control of Licenses and Authorizations” with the US regulatory authority, the Federal Communications Commission (FCC). It states that as part of the acquisition of Globalstar, the company will also take over Apple's stake in the company.

Apple has held a stake in Globalstar since October 2024. At the time, the iPhone manufacturer invested 1.5 billion US dollars in the satellite network operator. Apple acquired a 20 percent stake in Globalstar for 400 million US dollars. In addition, Apple paid 1.1 billion US dollars as an advance payment for “a new network for mobile satellite services, including a new satellite constellation with expanded ground infrastructure and MSS licensing.” Furthermore, Apple secured 85 percent of the satellite capacity for its use. With Globalstar's network, Apple operates the “Emergency SOS via Satellite” function, which was introduced with the iPhone 14 and also runs on the Apple Watch Ultra. It is expected that satellite communication could be expanded with iOS 27, for example, to include chat functions with images.

“Grapefruit” takes over Apple shares

According to the FCC document, Amazon plans to take over Apple's stake as part of a second phase of the merger process with Globalstar, after Amazon initially merged with the company through a newly founded subsidiary called Grapefruit Acquisition Sub II, LLC.

Although Apple is losing its stake in Globalstar, Amazon reaffirms its commitment to continuing to provide satellite services for iPhones and improving them via Globalstar.

“Amazon’s investment in constellation expansion and technical improvements will strengthen the 1.6/2.4 GHz MSS [mobile satellite services] that millions of iPhone users depend upon today for safety in areas without cellular coverage,” Amazon writes in the document.

Meanwhile, Apple will not remain the sole business partner for satellite communication. In its announcement in April, Amazon already stated that it would offer the services to other manufacturers of smartphones and mobile devices, as well as mobile network operators. Starlink had reportedly also pursued Apple as a customer.

(afl)