Google Gemini-generated image of the Telstar satellite in orbit.
Amazon is in discussions to acquire Globalstar, the company behind Apple’s SOS via Satellite feature on the iPhone and Apple Watch, according to a Financial Times report. The talks are said to put the value of the satellite telecommunications firm at somewhere around $9 billion.
Apple paid $1.5 billion for a 20% share of Globalstar in 2024, meaning they’ll likely have some input in the acquisition talks. Apple’s investment consisted of up to $1.1 billion to finance the construction and launch of Globalstar’s satellite infrastructure. Apple also bought a 20% passive equity interest in Globalstar at a cost of $400 million.
The acquisition is a part of Amazon’s broader push to compete with SpaceX’s Starlink. Amazon is building out its its own satellite internet service, dubbed Leo. Amazon currently has over 180 satellites in orbit, which while impressive, pales in comparison to Space X’s current fleet of more than 10,000 active satellites.
In February, Amazon filed a request with the Federal Communication Commission for a two-year extension to a looming July deadline to have 1,600 satellites in operation. The regulatory filing indicates Amazon is running up against launch capability.
No matter who buys Globalstar, Apple will want to hold on to its current 85% of the firm’s satellite network capacity. The iPhone maker uses the bandwidth for its Emergency SOS, Messages via satellite, and Find My location features.
Apple is also reported to be working on several new satellite-related features for its devices, including Apple Maps via satellite, sending photos in Messages while connected via Satellite, satellite over 5G, a satellite API for third-party applications, and more.
It’s not unreasonable to believe that if Amazon does buy Globalstar that it won’t continue its agreement with Apple. The two firms already have business dealings, as Apple relies on Amazon for some of its cloud services. Also, Amazon will likely put more money into Globalstars existing satellite infrastructure, making it beneficial to Apple.