Amazon is buying satellite giant Globalstar in a deal that analysts said is complicated due to Apple's stake

Amazon has announced that it is acquiring satellite company Globalstar for $11.57 billion. This move by the e-commerce giant comes as part of its plans to expand its Amazon Leo satellite internet service , enabling direct connectivity to consumer devices. This deal will also bring Apple into the arrangement, with the iPhone maker set to source satellite services for its iPhone and Apple Watch lineup from Amazon Leo following the acquisition. The move comes after weeks of negotiations among Amazon, Globalstar, and Apple and is expected to support broader connectivity offerings while reshaping existing partnerships in the satellite communications space.

The development follows earlier reports that Amazon was in talks to acquire Globalstar, though Apple’s 20% stake in the company had been considered a potential hurdle. Those discussions required a three-way negotiation, which now appears to be resolved, with Amazon confirming the deal.

In a blog post, Amazon wrote that it has “entered into a definitive merger agreement” with Globalstar “under which Amazon will acquire Globalstar, enabling Amazon Leo to add direct-to-device (D2D) services to its low-earth orbit satellite network and extend cellular coverage to customers beyond the reach of terrestrial networks. In addition, Amazon and Apple announced an agreement for Amazon Leo to power satellite services for iPhone and Apple Watch, including Emergency SOS via satellite.”



Apple’s ties with Globalstar and what the Amazon deal means for it


Apple has been involved with Globalstar for several years. In 2022, the iPhone 14 launched with satellite messaging. At first, the company focused on emergency services in areas without cell service.



The service later underwent further refinements, which included messaging via contacts and roadside assistance. In 2024, Apple entered into a $1.5 billion deal with Globalstar. It granted the iPhone maker a 20% stake in the company and access to 85% of its satellite communication services capabilities.


As Amazon has purchased Globalstar, Apple has no option but to move on to Amazon's Leo satellite services. Additionally, the deal promises to increase satellite connectivity, especially for consumer devices, since companies have other means of accessing the internet besides cellular services.

Amazon wrote, “With the new Amazon-Apple agreement, Amazon will continue to support iPhone and Apple Watch models currently using Globalstar’s existing and planned upcoming low Earth orbit satellite constellations, being manufactured by MDA Space, and collaborate with Apple on future satellite services using Amazon Leo’s expanded satellite network.”

Commenting on the deal, Greg Joswiak, senior VP of Worldwide Product Marketing at Apple, said, “Apple and Amazon have a long and proven track record of working together through Amazon’s core infrastructure services, and we look forward to building on that collaboration with Amazon Leo. This ensures our users will continue to have access to the vital satellite features they have come to rely on, including Emergency SOS, Messages, Find My, and Roadside Assistance via satellite, so they can stay safe and connected while off the grid.”