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Amazon has quietly agreed to buy satellite operator Globalstar in a deal valued at about €10.2 billion. The headline figure hides a smaller, but telling, twist: Amazon also had to purchase Apple's 20% stake in Globalstar, part of a broader arrangement Apple struck in 2024 worth roughly €1.02 billion, which included a share purchase of about €372 million.
A quiet buy with loud ambitions
The move is more than a corporate reshuffle. Amazon is building Amazon Leo, a low-Earth-orbit broadband network meant to deliver low-latency connectivity the way other constellations have tried to do. Buying Globalstar accelerates that roadmap. It also means Amazon inherits a partner that already routes critical services for Apple.
Yes, Apple’s Emergency SOS and Roadside Assistance features rely on Globalstar for satellite links. Will those features break? No. Amazon has publicly committed to keeping the existing Apple services running and says it will continue to cooperate with Apple to expand what they can offer.
The purchase was executed through a newly formed subsidiary called Grapefruit Acquisition Sub II, LLC. That name reads like a private joke aimed at Apple. Whether it was intended or not, it underscores how entwined hardware makers and satellite networks have become.
For Amazon, the acquisition is strategic. It folds Globalstar’s spectrum and ground infrastructure into Amazon Leo, shortening the path to usable coverage and capacity. For Apple, the deal removes an equity partner but preserves service continuity. And for the wider market, it signals a push toward making satellite connectivity a built-in feature across devices, not a niche add-on.
What comes next? Expect tighter coordination between Amazon and device makers, and a gradual opening of satellite connectivity to more smartphone brands. Competition will heat up, and consumers could win better coverage and lower latency as operators and manufacturers race to build reliable, global services.
Source: gsmarena
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