Amazon Just Bought the Satellite Behind iPhone’s SOS Feature
Amazon confirmed on April 14 that it has entered into a definitive merger agreement to acquire Globalstar, the satellite operator behind Apple's iPhone Emergency SOS feature. The deal is valued at approximately $11.6 billion, though the total consideration fluctuates with Amazon's share price until closing. Globalstar shareholders will receive $90 per share in cash or Amazon stock, with a proration mechanism capping cash elections at 40% of total shares.
The transaction is expected to close in 2027, subject to regulatory approvals. Alongside the acquisition, Amazon and Apple announced a separate agreement for Amazon Leo to power satellite features on current and future iPhone and Apple Watch models, including Emergency SOS, Messages, Find My, and Roadside Assistance via satellite.
What Amazon Is Getting
Globalstar has operated low Earth orbit satellites since 1998 and currently runs approximately 24 satellites in orbit. It is in the middle of a major expansion backed by Apple that will grow its fleet to 54 satellites, manufactured by MDA Space. The company also holds licensed mobile satellite spectrum with global authorizations, a tightly regulated asset that is difficult for newer entrants to acquire and one that significantly increases Globalstar's strategic value.
Equally important is what comes with the spectrum: Apple as a customer.
Apple invested approximately $1.5 billion in Globalstar in 2024, acquiring a roughly 20% stake and committing up to 85% of the company's network capacity to power satellite features across its device ecosystem. With Amazon's acquisition, that relationship transfers to Amazon Leo, along with the infrastructure buildout Apple has been funding.
The Direct-to-Device Play
The acquisition gives Amazon something its existing Leo broadband network does not have: direct-to-device capability. D2D technology allows satellites to connect directly to standard smartphones and wearables without requiring specialized hardware. Beginning in 2028, Amazon plans to deploy its own next-generation D2D satellite system that will deliver voice, data, and messaging services directly to mobile devices. Amazon says the Leo D2D system will offer substantially higher spectrum efficiency than existing direct-to-cell systems, translating into faster speeds.
Until that system is ready, Amazon will continue operating Globalstar's existing fleet and the upcoming satellites currently being manufactured for Apple.
The Starlink Dimension
The deal accelerates Amazon's effort to close the gap with Elon Musk's SpaceX, which has deployed approximately 10,000 satellites and serves over 10 million active Starlink users. Amazon Leo, scheduled to launch commercial service in mid-2026, is at an earlier stage of deployment. By acquiring Globalstar's spectrum licenses, established ground infrastructure, and operational expertise, Amazon skips significant construction cycles that would otherwise add years and billions to its buildout timeline.
Andy Jassy referenced Amazon Leo directly in his April 9 shareholder letter, describing it as one of Amazon's major growth bets alongside AI and robotics. The Globalstar acquisition converts that commitment from a long-term aspiration into an active infrastructure play with a confirmed enterprise customer in Apple.
What It Means for Ecommerce and Enterprise
For ecommerce operators and enterprise customers, the Leo network's long-term value proposition extends well beyond consumer satellite internet. Andy Jassy's shareholder letter outlined how Leo will integrate seamlessly with AWS, allowing enterprises and governments to move data back and forth for storage, analytics, and AI across locations where terrestrial connectivity is unreliable or unavailable. Supply chains, logistics fleets, remote operations, and IoT applications operating beyond terrestrial network coverage are all candidate use cases.
The Apple agreement in particular validates the commercial model. Apple's 2.5 billion active devices represent a built-in base of potential users for satellite-connected services, and the continuation of Emergency SOS and related features on Amazon Leo infrastructure ensures that Amazon enters the consumer satellite services market with an established, high-profile use case already in place.
