Amazon has reached an $11.57 billion agreement to acquire satellite provider Globalstar, including Apple’s 20 percent equity stake, to integrate its Project Kuiper network with future Apple device services.

Key Points

• Amazon will form a subsidiary, Grapefruit Acquisition Sub II, to facilitate the acquisition of Globalstar and its satellite operations.
• Apple previously invested $450 million in 2022 to secure 20 percent equity and 85 percent of Globalstar’s network capacity for iPhone satellite features.
• The deal covers existing Apple satellite services, including Emergency SOS, Messages via satellite, Find My, and Roadside Assistance.
• Future Apple device connectivity will transition to utilize Amazon’s expanded low Earth orbit (LEO) satellite network.
• The transaction is valued at approximately $11.57 billion and is projected to close in 2027, pending necessary regulatory approvals.

Why it Matters

This acquisition marks a significant consolidation in the satellite communications market by aligning Apple’s consumer hardware ecosystem with Amazon’s massive infrastructure investment. The partnership ensures long-term stability for critical emergency connectivity features while positioning Amazon as a dominant provider of satellite-based mobile services.