Amazon will acquire Apple's 20% stake in Globalstar as part of its $11.6 billion acquisition of the satellite communications provider, according to a regulatory filing. The tech giant plans to create a subsidiary to conduct the merger, a move confirmed in an FCC filing.
The deal, announced last month, gives Amazon control over Globalstar's satellite network, which currently powers Apple's emergency SOS and messaging services. By absorbing Apple's stake, Amazon eliminates a major shareholder and potential competitor for spectrum and orbital assets.
Neither Amazon nor Apple disclosed the specific value of Apple's 20% stake. The $11.6 billion purchase price for Globalstar was previously announced; the separate stake acquisition is part of the same broader transaction, per the filing.
The acquisition positions Amazon to expand its satellite ambitions, potentially integrating Globalstar's network with its Project Kuiper broadband constellation. For Apple, offloading its stake means a shift away from direct satellite ownership while possibly maintaining service agreements.
Globalstar's infrastructure remains critical for current iPhone satellite features, though Apple's exit from equity ownership raises questions about long-term partnership terms. No further details on licensing or service continuity have been disclosed.