Amazon is acquiring Globalstar for $11.57 billion and taking over Apple's iPhone satellite services

Amazon $AMZN and Globalstar announced a definitive merger agreement under which Amazon will acquire the satellite communications company for $11.57 billion, with a separate agreement for Amazon's Leo satellite network to take over powering satellite features on Apple $AAPL's iPhone and Apple Watch.

Globalstar stockholders may choose between $90 per share in cash or 0.3210 shares of Amazon stock at equivalent value, though cash payouts are capped at 40% of total shares outstanding, meaning any excess cash elections will automatically be converted to stock. The total consideration is subject to a downward adjustment of up to $110 million if Globalstar does not achieve certain operational milestones. Written consent approving the transaction has been secured from Globalstar stockholders representing roughly 58% of combined voting power. Regulatory approvals must be secured before the transaction can be completed, which the companies anticipate will happen sometime in 2027.

With this acquisition, Amazon will take over Globalstar's satellite operations, ground infrastructure, and mobile satellite service licenses, which are authorized in over 120 countries. Right now, Globalstar's network provides satellite features like Emergency SOS, Messages, Find My, and Roadside Assistance for iPhone 14 and newer models, as well as the Apple Watch Ultra 3.

A separate agreement made at the same time as the acquisition requires Amazon Leo to keep providing satellite service for current iPhone and Apple Watch users. Globalstar's existing satellites and new ones being built by MDA Space will be combined into a single Leo network as the companies work more closely together.

"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," Greg Joswiak, Senior Vice President of Worldwide Product Marketing at Apple, said in a statement.

Amazon Leo plans to launch its own direct-to-device satellite system in 2028.This system will connect to mobile phones and other devices, offering voice, data, and messaging with better spectrum efficiency than current competing systems. At full buildout, the Leo constellation — envisioned as comprising thousands of satellites in low Earth orbit and is expected to serve hundreds of millions of users worldwide.

The deal follows reported negotiations between the companies, with Apple's ownership in Globalstar being a key issue. The Next Web reports that Apple invested $1.5 billion in Globalstar in 2024, giving Apple about a 20% stake and priority access to 85% of the network's capacity. By combining the acquisition with a service agreement for Apple's satellite features, the companies have resolved the main issue holding up the deal.

As of the announcement, The Next Web reports Amazon Leo's orbital fleet sits somewhere between 180 and 200 satellites — a fraction of the planned full constellation. Those deployment delays led Amazon to petition the FCC for more time to satisfy a milestone that would have required roughly 1,600 satellites in orbit by this July, according to TechCrunch. TechCrunch reported that Globalstar's current constellation numbers more than 24 low Earth orbit satellites, with contracts already signed to bring an additional 50-plus new satellites into service.