Amazon Buys Apple's Stake in Globalstar for $11.6 Billion

Amazon has made significant strides in the satellite communications field by acquiring Apple's 20% stake in Globalstar for $11.6 billion. The acquisition includes creating a new subsidiary called Grapefruit Acquisition Sub II, which will transfer all securities and voting rights to Amazon.

This deal does not mean Apple is exiting the scene or abandoning its satellite services for iPhone users. Instead, it's a restructuring of the satellite network operator with Apple remaining a key partner and beneficiary of this massive infrastructure.

Globalstar operates on 1.6/2.4 GHz frequencies, providing essential services such as Emergency SOS via satellite and Messages via satellite to millions of users worldwide. Amazon has assured regulators that it will continue supporting and improving these vital services for iPhone users, with plans to inject additional investments and perform extensive technical upgrades.

Amazon's ambitions in space don't stop at managing what already exists; the company seeks to accelerate work on developing Globalstar's next-generation satellite constellation, known as C-3, which consists of 48 advanced satellites. Additionally, Amazon intends to deploy an advanced satellite communications network that enables direct-to-device connectivity, working alongside Globalstar's current systems.