Amazon is set to acquire Globalstar, the satellite provider for Apple, including taking over Apple’s stake in the company. The acquisition will involve creating a new subsidiary, Grapefruit Acquisition Sub II, to manage Globalstar’s operations and absorb Apple’s equity in the process. Apple holds a 20% equity and voting interest in Globalstar Licensee LLC, which operates the satellite system providing connectivity for iPhone users in the U.S. Apple initially invested $450 million in Globalstar in 2022, securing 20% equity and 85% of the network capacity for the Emergency SOS via satellite feature. The agreement between Apple and Amazon will see Amazon’s Leo satellite network powering existing satellite features on iPhones and Apple Watches, including Emergency SOS and Messages via satellite. This partnership enables Apple to benefit financially from the deal and align with a more established satellite operator. Amazon’s acquisition, valued at approximately $11.57 billion, is anticipated to be finalized by 2027, pending regulatory approval.
Is Amazon acquiring Apple’s stake in Globalstar?
