Amazon is buying Globalstar. The $11.57 billion deal announced in April gives the e-commerce giant an existing satellite fleet, valuable spectrum rights and a direct partnership with Apple. Months later, a fresh FCC filing reveals the precise mechanics. Amazon will create a new subsidiary called Grapefruit Acquisition Sub II to handle the merger and absorb Apple’s 20 percent stake in the Globalstar unit that powers iPhone connectivity. The transaction, expected to close in 2027, reshapes the race to connect ordinary smartphones from orbit.
Globalstar already operates two dozen satellites that deliver Apple’s Emergency SOS via satellite feature. That service has saved lives. A scout troop stranded on a winter hike in British Columbia. A driver whose car tumbled 250 feet down a cliff in Colorado. Greg Joswiak, Apple’s senior vice president of worldwide product marketing, highlighted those cases in the official announcement. “Since launching more than three years ago, our groundbreaking safety service Emergency SOS via satellite has helped save many lives around the world,” he said. “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.”
The partnership runs deeper than emergency texts. Amazon Leo will power Messages via satellite, Find My location sharing and Roadside Assistance for current iPhone 14 and later models as well as Apple Watch Ultra 3. It will continue to support those devices using Globalstar’s existing constellation and the new satellites now under construction by MDA Space. From 2028 onward, Leo’s next-generation direct-to-device system takes over. The arrangement gives Apple a more established operator. It gives Amazon a flagship customer with hundreds of millions of devices already in the field.
Panos Panay, Amazon’s senior vice president of devices and services, framed the acquisition in expansive terms. “There are billions of customers out there living, traveling, and operating in places beyond the reach of existing networks, and we started Amazon Leo to help bridge that divide,” he said, according to the official Amazon announcement. “By combining Globalstar’s proven expertise and strong foundation with Amazon’s customer-obsession and innovation, customers can expect faster, more reliable service in more places.”
Paul Jacobs, Globalstar’s chief executive, sounded equally optimistic. “We have long believed low Earth orbit satellite constellations offer the most effective path to truly connect users and devices anywhere and anytime,” he stated in the same release. The combination, he added, would advance “innovations in digital connectivity that will benefit our customers and advance us toward a more intelligent, continuously connected world.”
Yet the deal is not simply about extending Apple’s safety net. Amazon inherits spectrum in the L, S, and 1.6/2.4 GHz mobile satellite service bands. The May 27 FCC filing, first reported by PCMag, makes clear that Amazon intends to serve smartphones and other mobile devices across multiple carriers and vendors. Not just Apple. The company plans a next-generation direct-to-device constellation that delivers voice calls, higher data capacity, quicker connections and improved signal quality compared with legacy systems.
Amazon has developed specialty phased-array antenna technology tailored for these frequencies. The filing positions the acquisition as essential to compete against SpaceX’s Starlink direct-to-cell offering and AST SpaceMobile’s ambitious cellular-from-space network. Starlink already promises data speeds up to 150 megabits per second in some configurations. Amazon must move fast. Its broader Leo broadband constellation has faced criticism for lagging deployment milestones. The Globalstar assets provide an immediate operational foundation and help satisfy certain FCC licensing requirements.
The structure of the purchase reflects careful negotiation around Apple’s position. Apple had invested roughly $1.5 billion in Globalstar since 2022, securing a 20 percent equity stake and priority access to 85 percent of the network’s capacity at one point. Those terms complicated earlier sale talks. Bloomberg first reported in late 2025 that Globalstar was exploring a sale and had held preliminary discussions with SpaceX. Amazon’s bid prevailed. The final agreement caps cash elections at 40 percent of shares, with the remainder paid in Amazon stock valued at $90 per Globalstar share. A maximum $110 million downward adjustment applies if Globalstar misses specified satellite deployment milestones.
But the May FCC filing adds fresh regulatory texture. Amazon explicitly urges the commission to approve the transaction, arguing it aligns with national goals for leadership in direct-to-cell technology. FCC Chairman Brendan Carr signaled openness back in April, telling CNBC the deal fit the agency’s long-term vision. International approvals could prove more complex. Still, analysts see low near-term risk in the United States.
The technical roadmap points to 2028 for Leo’s dedicated direct-to-device satellites. Those birds will integrate with Globalstar’s current fleet and its upcoming C-3 generation. The combined system promises substantially higher spectrum efficiency than earlier direct-to-cell designs. Voice, data and messaging services become possible at scale. Amazon envisions supporting hundreds of millions of endpoints worldwide. Its existing Leo broadband satellites will operate alongside, creating a hybrid network that mixes fixed broadband with mobile connectivity.
This matters for more than hikers and drivers. Mobile network operators have begun exploring satellite extensions to fill coverage gaps in rural areas or during disasters. Amazon has signaled it will partner with carriers beyond its Apple relationship. The Globalstar spectrum and operational expertise accelerate those discussions. They also give Amazon a concrete revenue stream from day one through the Apple contract.
Competition in the satellite-to-phone market is intensifying. Starlink has launched thousands of satellites and demonstrated direct connections to unmodified phones. AST SpaceMobile aims to deliver cellular service from orbit using large, complex satellites. Amazon’s approach leans on acquiring proven assets rather than building everything from scratch. The $11.6 billion price tag, while large, represents a fraction of Amazon’s cash flow. It buys spectrum, satellites, regulatory history and a major customer in one transaction.
Apple benefits too. Its satellite features gain the backing of a company with deeper experience operating large constellations and integrating complex infrastructure. The partnership builds on years of collaboration through Amazon Web Services. Future iPhones and Watches could see expanded capabilities. Faster messaging. Better location accuracy. Perhaps eventual voice calls over satellite. The companies have committed to joint development on Leo’s expanded network.
Challenges remain. Regulatory reviews could drag. Technical integration between Globalstar’s legacy hardware and Leo’s next-generation design will require careful engineering. Deployment timelines for thousands of additional satellites face real-world constraints on launch capacity and manufacturing. And the market itself is unproven at consumer scale. Will carriers pay for satellite roaming? Will users notice the difference in daily life?
Those questions will play out over the next several years. For now, the deal cements an unusual alliance between two fierce competitors. Apple and Amazon rarely align so closely on strategic infrastructure. Their shared interest in reliable off-grid connectivity proved stronger than any rivalry. The result hands Amazon a faster path into the direct-to-device business while securing Apple’s safety features against disruption.
The FCC filing underscores the seriousness. Amazon is not acquiring a side business. It is folding Globalstar’s capabilities into the core of its Leo vision. Grapefruit Acquisition Sub II may sound like a whimsical name. The intent is anything but. This is a calculated bet that low-Earth orbit satellites can extend cellular networks everywhere. Billions of users live, work and travel beyond the reach of terrestrial towers. Amazon, with Apple’s devices leading the way, aims to reach them first.
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