Amazon's $11.6B Globalstar Deal Secures iPhone Satellite Features

Amazon is acquiring Globalstar under a definitive merger agreement announced today, a move that clarifies the future of the satellite infrastructure behind Apple's safety features. Based on the $90 per share offer, the deal values the company at roughly $11.6 billion. Alongside the agreement, Amazon and Apple have entered a long-term deal for Amazon Leo to power satellite capabilities on iPhone and Apple Watch.



The deal represents a significant shift for Apple's satellite roadmap. For years, Apple has relied on Globalstar to power its off-grid services, a partnership solidified by a massive investment from Apple's Advanced Manufacturing Fund in 2022. While recent reports suggested that Apple's 20 percent stake in the company might complicate a takeover, this new agreement ensures that iPhone users will maintain access to Emergency SOS, Messages via satellite, and Roadside Assistance.


Under the terms of the merger, Amazon will take over Globalstar's existing satellite operations and its radio frequency spectrum. This infrastructure will be integrated into Amazon Leo, the company's low Earth orbit satellite network. Beginning in 2028, Amazon Leo will deploy a next-generation Direct-to-Device (D2D) system designed to deliver faster speeds and improved performance compared to legacy direct-to-cell technologies, helping mobile network operators extend voice, text, and data services beyond the reach of traditional cellular networks.

The partnership gives Amazon a high-profile anchor customer while securing Apple's long-term satellite backend. The company is already reportedly developing satellite-powered versions of Apple Maps and photo messaging, features that will require greater bandwidth than basic emergency communications. Apple is also preparing to introduce its in-house C2 modem in future hardware to support 5G satellite standards.

Globalstar shareholders will receive $90.00 per share in either cash or Amazon stock, a premium that reflects the value of the company's licensed spectrum. A majority of Globalstar stockholders have already approved the transaction, which is expected to close in 2027. Until the transition is complete, Amazon has committed to supporting the existing and planned satellite launches being manufactured by MDA Space for Apple's current ecosystem.

The deal highlights the growing role of space-based connectivity in consumer devices. For Apple users, it ensures continued support for the safety features introduced with the iPhone 14, with a clear path forward under Amazon's expanded satellite network.