Amazon and Globalstar have entered into a definitive merger agreement valued at approximately $11.57 billion. Under the terms of the deal, Amazon will acquire the satellite operator, resolving ongoing speculation regarding the future of Globalstar’s long-standing exclusive partnership with Apple. The acquisition is expected to close in 2027, contingent upon regulatory approval and Globalstar reaching specific satellite deployment milestones.

Apple and Amazon Leo Collaboration

In a significant secondary agreement, Amazon and Apple have established a partnership to transition Apple’s satellite-based services to Amazon’s “Leo” satellite network. This infrastructure will continue to support critical iPhone and Apple Watch features, such as Emergency SOS, Find My, Roadside Assistance, and Messages via satellite. Amazon has committed to maintaining support for current and upcoming low Earth orbit constellations being developed by MDA Space. Furthermore, both companies intend to collaborate on future satellite services utilizing the expanded Leo network.

Greg Joswiak, Apple’s Senior Vice President of Worldwide Product Marketing, noted that the deal builds on the existing relationship between the two companies regarding Amazon’s infrastructure services, ensuring uninterrupted safety and connectivity features for Apple users.

Strategic Context and Future Outlook

The merger follows reports that Globalstar had previously explored a sale with other entities, including SpaceX. A primary hurdle in negotiations was Apple’s 20% stake in Globalstar; however, the new agreement appears to harmonize Amazon’s infrastructure ambitions with Apple’s service requirements.

The transition to a more robust satellite network aligns with Apple’s roadmap for advanced connectivity. Future features reportedly under development include Apple Maps via satellite, the ability to send photos in Messages via satellite, and 5G satellite integration. Additionally, Apple is expected to introduce a satellite API for third-party applications and enhanced indoor connectivity. By leveraging Amazon’s Leo network, Apple aims to provide the necessary bandwidth and infrastructure to support these high-data-rate functions, ensuring the iPhone remains a leader in “off-the-grid” communication technology.