Globalstar, the provider for Apple satellite, will be acquired by Amazon, as a deal has been reached where they will be taking over Apple’s stake in Globalstar. Amazon is starting a merger structure that will make Grapefruit Acquisition Sub II, a new subsidiary.
Apple has a 20% voting and 20% equity interest in LLC Globalstar Lincesee, a subsidiary of Globalstar that works on the satellite system that provides connectivity for satellite features for the iPhone for users in the United States.
$450 million has been invested in Globalstar by Apple in 2022 to fund the buildout for Globalstar and their satellite for the satellite feature called Emergency SOS. In return, Apple has gained 85% of the network capacity in Globalstar and has a 20% equity.
Amazon is going to support Apple Watch and iPhones that use the Earth orbit constellation by Globalstar, with the companies collaborating for future services via satellite.
