Following last month’s announcement that Amazon.com Inc. inked a deal to pay $11.6 billion for the internet satellite company Globalstar Inc., it was revealed today that it will now take over Apple Inc.’s 20% stake in the company.
Per the Federal Communications Commission filing, Amazon will create a subsidiary, Grapefruit Acquisition Sub II, LLC, that will “acquire Apple Inc.’s 20% equity and voting interests in Globalstar Licensee LLC immediately following step two of the proposed transaction.”
Apple had previously bought a 20% stake in Globalstar through a $1.1 billion agreement signed in 2024, which included a $400 million share purchase. However, once the deal is finalized, Apple will no longer retain those shares or the associated voting rights.
The filing highlighted the benefits that the acquisition will bring to the satellite-to-phone market where it will be compete in the evolving market with Space X Corp’s Starlink Mobile and AST SpaceMobile Inc. The deal means Amazon expanding its role in satellite communications and reinforcing its foothold in the fast-growing market for space-based connectivity.
Globalstar is already recognized for powering satellite features in Apple devices, including the emergency and communication services available on newer iPhones. Despite the change in ownership, Amazon had said it will continue its relationship with Apple to power the company’s devices. Users are not expected to experience any changes in service.
“Amazon’s investment in constellation expansion and technical improvements will strengthen the 1.6/2.4 GHz MSS [mobile satellite services] that millions of iPhone users depend upon today for safety in areas without cellular coverage,” Amazon wrote in the filing.
Amazon said the technical improvements will overcome previous hurdles regarding signal strength that was encumbered by bad weather, and the ability to penetrated foliage and buildings. “These improvements, together with the enhanced voice capabilities of Amazon’s planned system, will materially expand what satellite connectivity can do for consumers and businesses worldwide,” the company said.
Photo: Unsplash
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