Amazon Acquires Globalstar for $11.57B, Takes Over Apple's Satellite Backbone
Amazon will acquire Globalstar for $11.57 billion, gaining the satellite network behind Apple's Emergency SOS. A separate Apple-Amazon deal ensures iPhone satellite features continue under Amazon's Leo network.
The deal directly challenges SpaceX's Starlink by giving Amazon Leo immediate direct-to-device capability, extending cellular coverage to areas beyond the reach of terrestrial networks. It's Amazon's most aggressive move yet in the satellite space, leapfrogging years of Kuiper buildout by buying an operational network outright.
Apple's involvement made the deal more complex. Cupertino invested $1.5 billion in Globalstar in 2024 for a 20% equity stake and secured 85% of the company's network capacity for iPhone features — Emergency SOS, Messages via satellite, Find My, and Roadside Assistance via satellite. To resolve this, Amazon and Apple signed a separate agreement: Amazon's Leo network will continue powering all existing and future iPhone and Apple Watch satellite features, and the two companies will collaborate on next-generation satellite services running on the expanded constellation.
The acquisition is expected to close in 2027, subject to regulatory approvals and Globalstar hitting specific satellite deployment milestones. For Apple users, nothing changes on the surface — Emergency SOS will keep working. But the infrastructure underneath it now belongs to Amazon, making Bezos's company the satellite backbone for both its own customers and its biggest competitor's flagship safety feature.
The strategic implications are significant. Amazon now sits between Apple and the satellites its phones depend on, while simultaneously building a Starlink competitor. Whether that dual role creates leverage or antitrust scrutiny will depend on how the next 18 months of regulatory review play out.
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EXPERT TAKE
This is the most consequential satellite deal since SpaceX started launching Starlink. Amazon didn't just buy spectrum or a license — it bought Apple's satellite dependency. The separate Apple agreement keeps iPhone SOS running, but Amazon now controls the infrastructure that 2 billion iPhones rely on for emergency connectivity. That's not a competitor relationship; that's a supply chain chokepoint wrapped in a partnership agreement. The $11.57B price tag looks expensive until you factor in what Kuiper would have cost to reach the same capability organically. Amazon just bought years of time.