Amazon will spend $11.6 billion to acquire satellite operator Globalstar, a deal that makes Amazon the primary satellite service provider for iPhone and Apple Watch satellite features including Emergency SOS, location sharing, and roadside assistance messaging.
The merger agreement, announced today, gives Amazon control of Globalstar's 24 low-Earth orbit satellites and its spectrum licenses. Globalstar currently powers satellite connectivity on iPhone 14 and later models, plus the Apple Watch Ultra 3. Amazon said it will continue supporting those devices and collaborate with Apple on future satellite services using Amazon's expanded Leo network.
Panos Panay, Amazon's senior VP of devices and services, said the Apple deal will make Amazon the "primary satellite service provider for iPhone and Apple Watch."
Greg Joswiak, Apple's senior VP of worldwide product marketing:
"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."
The deal comes after Globalstar reportedly held talks with SpaceX about a sale last year. Apple declined a 2022 proposal from Elon Musk to bring Starlink to iPhones, and Globalstar's limited capabilities compared to Starlink's 10,000-plus satellite constellation had caused internal concern at Apple about whether the network was outdated and slow.
Amazon's Leo network, formerly Kuiper Systems, has deployed 241 satellites with plans for over 3,000. Globalstar's third-generation system will add 48 satellites. Amazon says its own direct-to-device service will launch in 2028 with "substantially higher spectrum use and efficiency than legacy direct-to-cell systems."
The merger requires Federal Communications Commission approval and is expected to close in 2027. Globalstar stockholders can choose between $90 in cash per share or equivalent Amazon stock. Amazon must also meet deadlines for replacing some Globalstar satellites.
FCC Chairman Brendan Carr, who recently criticized Amazon for petitioning against SpaceX's satellite launches, said on CNBC today that regulators are "very open-minded to" the deal and that the combination is "consistent with the long-term vision that we have to make sure that the US leads in this next-gen era of direct-to-cell technologies." Carr said he hopes to see at least three major satellite operators in the direct-to-cell market, alongside Starlink and AST SpaceMobile.
Amazon CEO Andy Jassy said last week that Amazon Leo is scheduled to launch in mid-2026 with revenue commitments from Delta Airlines, JetBlue, AT&T, Vodafone, and NASA.
Source: Amazon