Amazon may take over Apple’s 20% Globalstar stake as satellite deal moves ahead

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Amazon’s proposed Globalstar acquisition now spells out what happens to Apple’s stake in the satellite provider. A new FCC filing shows that Amazon’s merger structure would transfer Apple’s 20% equity and voting interests in Globalstar Licensee LLC to Grapefruit Acquisition Sub II, LLC, the Amazon subsidiary set to absorb Globalstar after the merger steps are complete.

That matters because Globalstar powers Apple’s off-grid satellite features on iPhone and Apple Watch. For users, the filing does not point to a service cutoff. Amazon and Apple already announced in April that Amazon Leo will support satellite services for current and future iPhone and Apple Watch features.

What the filing changes

The FCC filing is part of the regulatory process Amazon and Globalstar need to complete before the acquisition can close. It asks for consent to assign and transfer control of licenses and authorizations tied to the deal.

The Apple detail is tucked into the transaction structure. Amazon’s Grapefruit Acquisition Sub II would acquire Apple’s 20% equity and voting interests in Globalstar Licensee LLC after the proposed merger steps.

Globalstar’s latest SEC filing gives the background. It says Apple, described as the company’s “Customer,” bought 400,000 Class B Units in the Globalstar SPE for $400 million, representing a 20% equity interest. The same filing says Acquisition Sub II will acquire all of those units after the mergers.

iPhone satellite features should keep working

Amazon’s April announcement said Amazon Leo will power satellite services for supported iPhone and Apple Watch models, including Emergency SOS via satellite.

Globalstar currently supports satellite service on iPhone 14 or later and Apple Watch Ultra 3. Amazon says those features let users text emergency services, use Messages via satellite, request roadside assistance, and share location when they are off the grid.

The company also says it will continue supporting Apple devices that use Globalstar’s existing and planned low Earth orbit satellite constellations, while working with Apple on future satellite services using Amazon Leo’s expanded network.

Amazon wants a broader direct-to-device network

For Amazon, Globalstar brings satellites, spectrum, and mobile satellite services experience into Amazon Leo. The company says Globalstar’s assets will help Leo add direct-to-device service to future generations of its low Earth orbit satellite network.

Amazon has also outlined a bigger plan beyond Apple. Starting in 2028, it expects Amazon Leo to deploy a next-generation D2D satellite system for voice, data, and messaging services on mobile phones and other cellular devices. That would put Amazon deeper into the race to connect regular phones when terrestrial networks are unavailable.

The Globalstar deal, valued at up to $11.57 billion, is expected to close in 2027. It still needs regulatory approvals and other closing conditions, including certain satellite milestones. For now, Amazon is moving to take over Apple’s Globalstar stake as part of the acquisition, while Apple users are expected to keep access to the satellite features they already rely on.

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