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Amazon buying Globalstar; Apple satellite services to use Amazon Leo

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Why This Matters

The acquisition of Globalstar by Amazon signifies a major step in expanding satellite connectivity, enabling Amazon Leo to offer direct-to-device services and enhancing Apple's satellite communication capabilities for iPhone and Apple Watch. This collaboration promises to accelerate innovation in satellite-based services, improving connectivity in remote areas for consumers and setting new industry standards.

Key Takeaways

Amazon has today announced that it’s buying satellite giant GlobalStar to allow its Amazon Leo service to offer direct connectivity to consumer devices. Apple owned 20% of the company.

The deal will see Apple buy its satellite services for iPhone and Apple Watch from Amazon Leo, with the acquisition promising to accelerate innovation and connectivity …

Apple satellite services

Apple first added satellite messaging to the iPhone 14 back in 2022. This was initially limited to contacting emergency services while outside cellular coverage areas. It was later extended to offer roadside assistance cover for mechanical problems and messaging with family and friends too.

Apple has so far partnered with Globalstar for all of its satellite communication services. However, capacity limitations meant that some believed the company would switch instead to Elon Musk’s Starlink at some point.

Amazon acquisition of Globalstar

The latest news doesn’t come out of nowhere. A report earlier this month suggested that Amazon was in talks to acquire GlobalStar. However, at that point, Apple’s 20% stake in the satellite company was considered to be a complicating factor.

The report said that this would require three-way negotiations between Amazon, GlobalStar and Apple. It’s now clear that these negotiations proved successful.

Amazon made the announcement today.

Today Amazon.com, Inc. and Globalstar, Inc. announced that they have entered into a definitive merger agreement under which Amazon will acquire Globalstar, enabling Amazon Leo to add direct-to-device (D2D) services to its low Earth orbit satellite network and extend cellular coverage to customers beyond the reach of terrestrial networks. In addition, Amazon and Apple announced an agreement for Amazon Leo to power satellite services for iPhone and Apple Watch1, including Emergency SOS via satellite.

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