Amazon Takes Aim at Starlink With $11.57 Billion Globalstar Deal—And Apple’s 20% Stake Is Part of the Price

Amazon is about to become the primary force behind the satellite connectivity in your iPhone, marking the end of a short-lived era where Apple held a direct financial claim on the orbital infrastructure. On May 27, 2026, Amazon and Globalstar submitted a formal application to the Federal Communications Commission detailing how the e-commerce giant would not only absorb Globalstar itself but also swallow Apple’s 20% stake, clearing the final structural hurdle in an $11.57 billion deal designed to challenge SpaceX’s Starlink head-on .

How Apple's Stake Became Amazon's Target

Apple’s position in Globalstar was never passive. In 2024, the company committed roughly $1.1 billion to the satellite operator—including a $400 million share purchase—which locked in a 20% equity and voting stake alongside access to approximately 85% of Globalstar's network capacity . That stake, held as 400,000 shares of Class B stock, gave Apple significant leverage over Globalstar's direction because the satellite network underpinned Emergency SOS, Messages via satellite, Find My, and Roadside Assistance on iPhone 14 and newer devices .

When Amazon decided to acquire Globalstar, Apple’s ownership was a complication that required three-way negotiation. The solution is detailed in the FCC filing and involves two Amazon-created entities designed to execute the merger smoothly .

The Grapefruit Structure: Why Two Subsidiaries Exist

Amazon structured the takeover using two subsidiaries with distinct roles, both outlined in the SEC filing dated April 13, 2026 :

• Grapefruit Acquisition Sub I, Inc.—a direct wholly owned subsidiary of Amazon, incorporated in Delaware—will merge directly with Globalstar. In this step, Globalstar survives as the legal entity, but its operations and assets become Amazon’s.
• Grapefruit Acquisition Sub II, LLC—also a direct wholly owned subsidiary—serves as the vehicle that will specifically absorb Apple’s 20% equity and voting stake. Once the merger is complete, Apple’s Class B shares will transfer to this LLC, making Amazon the controlling shareholder of Globalstar’s licensed satellite subsidiary .

Amazon’s FCC filing, titled “Application for Consent to Assign and Transfer Control of Licenses and Authorizations,” confirms the company explicitly told regulators it will take over Apple’s stake as part of the acquisition . The two-step structure isolates the equity transfer from the operating merger, which can simplify regulatory review and licensing continuity for spectrum rights .

iPhone Satellite Services Won’t Skip a Beat

For Apple device users, the most immediate concern is whether Emergency SOS and other satellite features will continue working. The answer is yes—Amazon and Apple signed a separate long-term commercial agreement that directs Amazon Leo to power existing and future iPhone and Apple Watch satellite services .

Amazon committed to supporting these features using a combination of Globalstar’s current 24-satellite constellation and the expanding Leo network. The specific services covered include :

• Emergency SOS via satellite
• Messages via satellite (peer-to-peer texting)
• Roadside Assistance via satellite
• Find My location sharing

Apple’s senior vice president of worldwide product marketing, Greg Joswiak, publicly emphasized the operational continuity, stating the deal “ensures our users will continue to have access to the vital satellite features they have come to rely on” .

Beyond keeping current features running, the two companies agreed to collaborate on future satellite services—a signal that Amazon sees Apple as a linchpin customer, not just a shareholder to be bought out .

The Strategic Prize: Spectrum, Satellites, and Starlink

Amazon’s true motivation goes beyond keeping iPhones connected. The Globalstar deal provides immediate access to three assets that would otherwise take years to build or license organically :

1. 24 operational low-Earth orbit satellites that Amazon can integrate with its existing network of more than 200 satellites, accelerating its direct-to-device (D2D) deployment timeline .
2. Globally licensed L-band and S-band spectrum, including Band 53/n53, which is essential for connecting standard smartphones to satellites without dedicated ground terminals . Globalstar holds approximately 7.8 MHz of L-band and 16.5 MHz of S-band spectrum, though the asymmetric configuration limits two-way throughput capabilities .
3. C-band optionality, which provides additional capacity for future services .

Amazon’s investor presentation to the SEC stated outright that Globalstar’s spectrum portfolio combined with Leo’s infrastructure will enable “higher-capacity, more spectrum-efficient direct-to-device services than legacy direct-to-cell systems”—language aimed squarely at SpaceX’s Starlink Mobile service, which uses different spectrum bands and a larger satellite architecture .

What Still Needs to Happen Before Closing

The transaction is not yet final. It is expected to close sometime in 2027, contingent on three categories of conditions :

• FCC consent for the assignment and transfer of Globalstar’s spectrum licenses and operating authorizations.
• Regulatory approvals from other agencies that oversee foreign ownership, competition, and satellite operations.
• Deployment milestones tied to Globalstar’s ongoing satellite build-out, which affect the final merger consideration.

The consideration itself is structured with flexibility: Globalstar shareholders can elect to receive $90 per share in cash or 0.3210 shares of Amazon stock, with cash payouts capped at 40% of total shares outstanding . Additional downward adjustments up to $110 million can apply if Globalstar misses certain operational milestones .

Shareholders representing approximately 58% of Globalstar’s voting power have already consented to the deal in writing, which accelerates the regulatory path but does not bypass it .

What This Means for the D2D Market

The acquisition vaults Amazon from a prospective competitor into an immediate player in the direct-to-device race, a market previously dominated by SpaceX’s Starlink and challenged by AST SpaceMobile and others . By acquiring Globalstar’s operating spectrum rather than pursuing new licenses, Amazon bypasses years of regulatory filings that an organic entry would require . The added advantage of having Apple as a committed anchor customer—Apple is reportedly spending roughly $1.5 billion across its Globalstar relationship—gives Amazon instant scale and a consumer foothold that no other D2D entrant currently commands .

The real competitive test will come after the 2027 close, when Amazon Leo’s combined constellation and spectrum holdings must deliver on the promise of higher-capacity, lower-latency satellite connectivity that works seamlessly with everyday smartphones—not just in emergencies, but as a routine expansion of cellular coverage.