Amazon to Absorb Apple’s Globalstar Stake in Satellite Acquisition

*Amazon will fold Apple’s 20 percent equity in Globalstar Licensee LLC into its pending purchase of the satellite operator through a new merger subsidiary.*

The filing

An FCC filing shows Amazon plans to create a subsidiary named Grapefruit Acquisition Sub II that will first absorb Globalstar’s operations and then acquire Apple’s equity interest. Apple holds 20 percent equity and 20 percent voting rights in Globalstar Licensee LLC, the entity that runs the satellite network used for iPhone Emergency SOS.

Background of Apple’s position

Apple invested $450 million in Globalstar in 2022 to support construction of the satellites that enable the feature. In return it received its current stake plus an 85 percent claim on certain revenue from the service in the United States. The new structure lets Amazon assume that position without a separate negotiation.

Mechanics of the deal

Amazon announced last month that it would buy Globalstar outright. The FCC notice extends that transaction to include Apple’s holdings. No financial terms for the Apple portion have been disclosed.

Why it matters

The move concentrates control of a key low-Earth-orbit network inside Amazon at a time when Apple still relies on the same satellites for a flagship safety feature. Device makers that want satellite connectivity now face a single large counterparty rather than two separate investors. Apple’s original investment helped seed the network; the current filing shows how quickly that foothold can change hands once the operator itself is for sale.

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Sources:

• 9to5Mac
• MacRumors

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