Amazon to Acquire Globalstar for $11.5B, Power Apple iPhone
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- Amazon announced a definitive merger agreement to acquire Globalstar for roughly $11.5‑$11.6 billion, with the transaction slated to close in 2027.
- Apple signed a long‑term agreement to use the Leo satellite network for iPhone and Apple Watch services, enabling emergency texting and other connectivity when out of cell range.
- Globalstar will be integrated into Amazon’s Low‑Earth‑Orbit Leo constellation, expanding direct‑to‑device capabilities for calling, texting, and data.
- Amazon positions the deal as a direct challenge to SpaceX’s Starlink in the satellite‑internet market.
- Apple’s C‑3 satellite constellation plan appears to be sidelined as Amazon builds its own system for 2028, effectively cancelling the C‑3 rollout.
- Amazon’s acquisition is expected to boost its satellite bandwidth and spectrum assets, supporting its internet‑from‑space services.
Why it matters: Amazon gains immediate low‑earth‑orbit capacity and a direct‑to‑device link for Apple’s iPhone and Watch, strengthening its satellite‑internet offering and expanding its Leo network, while Apple secures satellite coverage for its devices and its C‑3 constellation plan is effectively abandoned, sharpening competition with SpaceX’s Starlink.
