Amazon set to acquire Apple’s 20% Globalstar stake, iPhone satellite service continues

Amazon has finalized an $11 billion deal involving satellite operator Globalstar, marking a major step in its plans to expand satellite internet services.

As part of the agreement, Amazon must also buy out Apple’s 20% stake in Globalstar. Apple had earlier invested in the company in 2024, including a $1.1 billion commitment and a $400 million share purchase.

Amazon is developing its own satellite internet project called Amazon Leo. The service will use low Earth orbit satellites to provide fast and low-latency internet, competing with existing systems like Starlink.

To complete the deal structure, Amazon will acquire Apple’s remaining stake through a newly formed subsidiary named “Grapefruit Acquisition Sub II, LLC.”

Globalstar currently supports important Apple features such as Emergency SOS and Roadside Assistance on iPhones and Apple Watches. These services depend on its satellite network for reliable communication in remote areas.

Despite the ownership changes, Amazon has said that Apple services will continue without interruption. The company also confirmed that it will keep working with Apple even after the acquisition.

Amazon further plans to expand its satellite services and may partner with other smartphone makers in the future as it grows its global connectivity network.