Amazon 'in talks' to acquire Globalstar, and Apple's stake is a key factor

Amazon is reportedly in advanced negotiations to acquire Globalstar, the satellite communications company that powers Apple's Emergency SOS via satellite feature, with Apple's 20% ownership stake emerging as a key factor in the potential deal.

According to a report from the Financial Times, Amazon's interest in Globalstar stems from its ambitions to compete with SpaceX's Starlink satellite internet service. Amazon is currently building out its own satellite internet service called Amazon Leo, previously known as Project Kuiper, which aims to provide global broadband coverage.

Apple's involvement with Globalstar dates back to November 2024, when the company took a 20% stake in the satellite provider worth approximately $400 million at the time. As part of that deal, Apple also committed to $1.1 billion in "upfront infrastructure prepayments" to help build out Globalstar's satellite network.

The timing of this potential acquisition is particularly interesting given Globalstar's valuation has increased dramatically since Apple's initial investment. The company's valuation has grown so substantially that Apple's stake is now potentially worth around $1.1 billion—essentially the same amount Apple prepaid for satellite services in 2024.

Apple currently supports Emergency SOS via satellite on iPhone 14 or later models, as well as the Apple Watch Ultra 3. This service allows users to connect with emergency services when cellular connectivity is unavailable, using Globalstar's satellite network to transmit messages and location data.

The acquisition talks highlight the growing importance of satellite communications in the consumer technology space. While Apple has focused on emergency messaging and location sharing, Amazon appears to be positioning itself for broader satellite internet services that could compete directly with existing providers.

For Apple, the negotiations present a complex situation. The company's significant stake in Globalstar gives it considerable influence over the satellite provider's operations and future direction. Any acquisition by Amazon would likely require Apple's approval or at minimum, extensive negotiations to protect its interests in the satellite services that power critical safety features on its devices.

The potential deal also underscores the strategic value of satellite communications infrastructure. As more tech companies look to provide connectivity solutions beyond traditional cellular networks, companies like Globalstar that already have established satellite networks and partnerships with major tech firms become increasingly valuable acquisition targets.

For consumers, the outcome of these negotiations could have implications for the future of satellite-based emergency services and potentially broader satellite internet access. If Amazon successfully acquires Globalstar, it might accelerate the development of consumer satellite internet services, though it could also raise questions about the continuity of Apple's Emergency SOS service.

As of now, neither Amazon nor Globalstar has officially commented on the acquisition talks, and it remains unclear whether the negotiations will result in a completed deal or how Apple's stake might factor into any final agreement.