Amazon Reportedly in Talks to Buy Apple Satellite Partner...

What’s Happening

Real talk: Apple’s 20 percent stake in satellite partner Globalstar has become a sticking point in Amazon’s reported bid to acquire the company, according to the Financial Times ().

Amazon is in talks to buy Globalstar in a deal that would value the satellite telecommunications firm at roughly 9 billion, as part of a broader push to compete with SpaceX’s Starlink. But Apple’s ownership interest – acquired as part of a 1. (yes, really)

5 billion investment in 2024 – has required separate negotiations b Amazon Reportedly in Talks to Buy Apple Satellite Partner Globalstar Thursday 4:45 am PDT by Tim Hardwick Apple’s 20 percent stake in satellite partner Globalstar has become a sticking point in Amazon’s reported bid to acquire the company, according to the Financial Times ($).

The Details

Under its existing agreement with Globalstar, Apple has access to 85 percent of the company’s satellite network capacity for iPhone features including Emergency SOS, Messages via satellite, and Find My location updates. It’s unclear how an Amazon acquisition would affect that arrangement.

Apple has not publicly commented on the talks, and no deal has been finalized. Discussions could still fall apart, according to people familiar with the matter who spoke to FT .

Why This Matters

Amazon rn has more than 180 satellites in orbit through its own satellite the internet program, known as Leo, but that figure is dwarfed by SpaceX’s fleet of over 10,000 active satellites. Bloomberg reported in October that Globalstar was exploring a sale and had held early talks with SpaceX. Apple is working on a series of new satellite connectivity features for the iPhone which will apparently require upgrades to Globalstar’s infrastructure.

Tech companies have been making moves like this as competition heats up.

The Bottom Line

Apple is working on a series of new satellite connectivity features for the iPhone which will apparently require upgrades to Globalstar’s infrastructure. They include Apple Maps via satellite, photos in Messages via satellite, connectivity in indoors environments, satellite over 5G, and a satellite API for third-party apps.

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