Amazon will acquire Apple’s 20% stake in satellite firm Globalstar
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.
