Amazon Files to Absorb Apple’s Globalstar Stake

*An FCC filing outlines Amazon’s use of a new subsidiary to claim Apple’s 20 percent equity in the satellite operator after Amazon’s earlier plan to buy the company outright.*

Amazon plans to acquire Apple’s 20 percent stake in Globalstar Licensee LLC through a merger structure disclosed in a recent FCC filing. The move follows Amazon’s announcement last month that it would purchase Globalstar itself.

The filing describes the creation of Grapefruit Acquisition Sub II, a new Amazon subsidiary that will first absorb Globalstar’s operations and then take ownership of Apple’s equity and voting interests in the licensee entity. Apple holds 20 percent equity and 20 percent voting rights in that subsidiary, which runs the satellite network supporting Emergency SOS via satellite on iPhones in the United States. Apple committed $450 million to Globalstar in 2022 to support the satellite buildout required for the feature.

Deal mechanics

Amazon’s approach uses a two-step merger rather than a direct purchase of Apple’s shares. The new subsidiary will integrate Globalstar’s assets, after which Apple’s interest transfers to Amazon. The filing does not specify the price or other terms of the stake transfer.

Apple’s original investment gave it both equity and a larger share of certain governance rights, though the exact breakdown of those rights beyond the 20 percent voting stake is not detailed in the current documents.

No public reaction yet

Neither company has issued statements on the FCC filing beyond the required regulatory notice. Globalstar has not commented on how the change in ownership might affect its existing agreements.

Why it matters

The transaction consolidates control of a key satellite network under Amazon at a time when satellite connectivity is moving from niche emergency service to broader commercial offering. Apple’s $450 million commitment built capacity that now appears headed to a direct competitor in cloud and device services. For developers and operators already integrating satellite links, the shift reduces the number of independent spectrum holders and increases Amazon’s leverage over future capacity and pricing terms. The structure chosen in the filing suggests Amazon wants regulatory clearance for the full Globalstar acquisition and the Apple stake in a single process.

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Sources:

• 9to5Mac
• MacRumors

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