After last month advertisement that Amazon would acquire Globalstar, the company has now informed the FCC that it will also take over Apple’s 20% stake in the satellite connectivity company. Here are the details.
Amazon promises to keep Globalstar satellite service running for iPhone users
How he saw it PCMagAmazon has filed an “Request for Consent to Assign and Transfer Control of Licenses and Authorizations” with the FCC, stating that as a result of its acquisition of Globalstar, the company will also take over Apple’s interest in the company.
In late 2024, an FTC filing showed that Apple expand your investment in Globalstar to 1.1 billion dollars, compared to the 300 million dollars originally linked to the satellite connectivity partnership that promotes the Emergency SOS via satellite feature.
Under the terms of the expanded deal, Globalstar committed 85% of its satellite capacity to Apple, which, in turn, agreed to acquire a 20% stake in the company in the form of 400,000 Class B shares.
Now, Amazon has informed the FCC that it plans to take over Apple’s stake as part of its $11.6 billion acquisition of Globalstar, in a second step of the merger process after Amazon first combined with Globalstar through a newly created subsidiary called Grapefruit Acquisition Sub II, LLC.
From the presentation:
Grapefruit Acquisition Sub II, LLC will acquire 20% of Apple Inc.’s shares and voting rights in Globalstar Licensee LLC immediately following the second step of the proposed transaction.
In the filing, Amazon reaffirms that the deal will not disrupt Globalstar’s existing work with Apple, while arguing that the acquisition will allow for broader expansion of its satellite services beyond Apple’s ecosystem:
Additionally, the proposed combination will allow Amazon to build a next-generation global D2D network designed specifically to serve smartphones and other mobile devices across multiple carriers and providers.
read PCMagThe full report, which also links to the original FCC filing, follow this link.
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