Amazon has today announced that it’s buying satellite giant GlobalStar to allow its Amazon Leo service to offer direct connectivity to consumer devices. Apple owned 20% of the company.
The deal will see Apple buy its satellite services for iPhone and Apple Watch from Amazon Leo, with the acquisition promising to accelerate innovation and connectivity …
Apple first added satellite messaging to the iPhone 14 back in 2022. This was initially limited to contacting emergency services while outside cellular coverage areas. It was later extended to offer roadside assistance cover for mechanical problems and messaging with family and friends too.
Apple has so far partnered with Globalstar for all of its satellite communication services. However, capacity limitations meant that some believed the company would switch instead to Elon Musk’s Starlink at some point.
The latest news doesn’t come out of nowhere. A report earlier this month suggested that Amazon was in talks to acquire GlobalStar. However, at that point, Apple’s 20% stake in the satellite company was considered to be a complicating factor.
The report said that this would require three-way negotiations between Amazon, GlobalStar, and Apple. It’s now clear that these negotiations proved successful. Amazon made the announcement today.
Today Amazon.com, Inc. and Globalstar, Inc. announced that they have entered into a definitive merger agreement under which Amazon will acquire Globalstar, enabling Amazon Leo to add direct-to-device (D2D) services to its low Earth orbit satellite network and extend cellular coverage to customers beyond the reach of terrestrial networks. In addition, Amazon and Apple announced an agreement for Amazon Leo to power satellite services for iPhone and Apple Watch1, including Emergency SOS via satellite.
Amazon has paid $11.57 billion for the acquisition.
For now, things will continue unchanged.
With the new Amazon-Apple agreement, Amazon will continue to support iPhone and Apple Watch models currently using Globalstar’s existing and planned upcoming low Earth orbit satellite constellations, being manufactured by MDA Space, and collaborate with Apple on future satellite services using Amazon Leo’s expanded satellite network.
However, Amazon is promising that the deal will deliver accelerated innovation and connectivity.
Accelerates innovation and expands connectivity options: By combining Amazon’s low Earth orbit satellite network with Globalstar’s infrastructure and spectrum assets, the acquisition enables faster deployment of D2D connectivity at scale—reaching areas where terrestrial deployment is delayed, cost-prohibitive, or vulnerable to disruption. It will also mean more reliable mobile data and communications services to consumers, businesses, and governments, while setting new benchmarks for innovation and giving customers greater choice, flexibility, and value.
Apple says it looks forward to collaborating with Amazon Leo.
“Since launching more than three years ago, our groundbreaking safety service Emergency SOS via satellite has helped save many lives around the world—from a scout troop stranded on a winter hike in British Columbia, to a woman who was airlifted to safety in Colorado after her car rolled down a 250-foot cliff,” said Greg Joswiak, Senior Vice President of Worldwide Product Marketing, Apple.
“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. This ensures our users will continue to have access to the vital satellite features they have come to rely on, including Emergency SOS, Messages, Find My, and Roadside Assistance via satellite, so they can stay safe and connected while off the grid.”
This is pretty big news, and is indeed likely to see faster expansion of the satellite services available on Apple devices. Elon Musk isn’t, however, going to be a happy man.
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