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4w ago

Amazon to Acquire Apple’s 20% Stake in Globalstar

Regulatory filings show the purchase moves control of Globalstar’s licenses to a new Amazon subsidiary, a step that would let Amazon fold the operator into Amazon Leo to scale direct‑to‑device phone service.

Apple's 20% Globalstar stake moves to Amazon
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Overview

  • The FCC filing revealed Wednesday that Grapefruit Acquisition Sub II, LLC — a new Amazon subsidiary — will absorb Globalstar operations and acquire Apple’s 20 percent equity and voting interest in Globalstar Licensee LLC.
  • Amazon is buying Globalstar as part of an approximately $11–11.6 billion transaction that the companies say could close in 2027 if U.S. and other regulators approve the license transfers.
  • Amazon told regulators it will keep supplying and improving the satellite links that power iPhone and Apple Watch features such as Emergency SOS via Satellite, Messages via Satellite, Find My, and Roadside Assistance.
  • The company plans to combine Globalstar’s satellites, spectrum, and ground stations with its Amazon Leo program to build a global direct‑to‑device network for phones and IoT and to compete with firms like SpaceX, AST SpaceMobile, and Lynk.
  • The FCC filing does not disclose what Apple will receive for giving up its stake, and regulators will now review license transfers and commercial details that will determine how users, carriers, and device makers share access to the network.