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A new FCC filing makes it official: Amazon is not only targeting Globalstar itself, but also Apple's stake in the satellite operator. This means iPhone satellite services will lose their direct financial link to Apple – but functionality will remain guaranteed.
Amazon's acquisition of Globalstar had been anticipated for weeks, and the official announcement in mid-April already provided the key details: a purchase price of $11.57 billion, a concurrent migration of iPhone satellite services to Amazon Leo, and a long-term agreement with Apple. At the time, the question remained: what would happen to the 20 percent stake Apple had secured in Globalstar? A recently filed application with the US Federal Communications Commission (FCC) provides the answer: Amazon is also acquiring this stake, thus closing a remaining gap in the transaction (via PCMag).
What's in the FCC application
Amazon has filed an "Application for Consent to Assign and Transfer Control of Licenses and Authorizations" with the FCC. The application explicitly states that Apple's 20 percent stake in Globalstar Licensee LLC will transfer to Amazon as part of the transaction. Specifically, this will be accomplished through a newly established subsidiary called Grapefruit Acquisition Sub II, LLC, which, following the actual merger between Amazon and Globalstar, will also acquire Apple's shares in the second step of the transaction.
In concrete terms, this means that Apple held 400,000 Class B shares, representing its 20 percent stake. This entire position will be transferred to the new corporate group under Amazon. The total deal is valued at approximately $11.6 billion – Globalstar's business and Apple's share of it together form the package that the FCC is now seeking approval for.
How Apple became a Globalstar investor
Apple's stake was never a traditional financial investment, but rather part of an infrastructure agreement. At the end of 2024, an FTC filing revealed that Apple was increasing its investment in Globalstar from an initial $300 million to $1.1 billion. In return, Globalstar committed 85 percent of its satellite capacity exclusively to Apple, thus providing the technological foundation for features such as SOS emergency calls via satellite, satellite messaging, Find My via satellite, and roadside assistance.
The 20 percent stake was part of this expanded package. Apple was thus not only a major customer, but also a direct co-owner of the infrastructure that supports its satellite service. This unusual dual role ends with the completion of the Amazon acquisition.
What's changing for iPhone users
Amazon has reaffirmed in its FCC filing that the existing partnership with Apple will not be affected by the change in ownership. Emergency SOS via satellite, messaging, and other services will continue unchanged and have been migrated to Amazon Leo in the long term through the agreement signed in April. Therefore, there will be no immediate functional changes for iPhone and Apple Watch users.
At the same time, Apple is not exclusively dependent on a single provider. As early as 2025, the company launched initial tests of satellite emergency calls via Starlink in the US, initially in partnership with T-Mobile. This gives Apple a second infrastructure option, reducing the risk of over-reliance on a single partner.
Amazon's plan extends far beyond Apple
In its application, Amazon makes it clear that the acquisition is strategically much broader than simply continuing the Apple connection. The company aims to build a "next-generation" D2D network with Globalstar – that is, direct-to-device satellite connections for smartphones and other mobile devices that work across platforms and carriers. With this, Amazon Leo is positioning itself directly against SpaceX's Starlink, which currently holds the dominant position in this market.
In this logic, Apple is the most important anchor customer, but deliberately not the only one. Amazon can use the Globalstar network for its own devices and for other smartphone manufacturers, thereby securing a position in the D2D market that will remain viable even independently of Apple.
The strategic shift in the satellite market
With the complete acquisition of Globalstar, including Apple's stake, by Amazon, a new landscape is emerging in the satellite market. While Apple remains a permanent customer and can continue to rely on the existing infrastructure, it relinquishes its co-ownership status. In return, a key component of iPhone satellite services is moving into the corporate group of a direct competitor – Amazon, with Alexa, Fire devices, and its own mobile strategy in several markets, is a rival of Apple.
How the relationship develops depends on how closely the contractual bond between Apple and Amazon Leo is actually structured and how quickly Apple expands parallel options like Starlink. The current FCC filing marks one key point in this process: With the completion of the transaction, the last direct ownership link between Apple and its satellite infrastructure is severed. (Image: Amazon)
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