Amazon has agreed to buy Globalstar in a deal worth over $11 billion. It has the potential to add more satellite services to Apple’s iPhone in the future.

The iPhone’s satellite features, including Emergency SOS via Satellite, rely on connectivity from satellite service operator Globalstar. That company is now being bought by another tech giant, Amazon.

Fulfilling rumors from early April, Amazon confirmed on Tuesday that it has agreed to acquire Globalstar. The deal, which will require the usual regulatory approval for closure, will see Globalstar shareholders receiving either $90 in cash or 0.321 shares of Amazon common stock in exchange for their shares.

According to CNBC, the deal is worth approximately $11.5 billion.

The purchase will see Amazon’s Leo satellite business gain Globalstar’s satellite operations, infrastructure, MSS spectrum licenses with global authorizations, and other assets. This will help improve Amazon Leo, enabling the arm to gain more bandwidth and space-based infrastructure for its direct-to-device services.

An Apple benefit

Apple has been a big part of the negotiations, in part because of its sizable investment in Globalstar. In November 2024, a $1.1 billion commitment to expand satellite messaging was accompanied by an equity deal for a 20% stake in the company.

Depending on how Apple plays this, it could mean owning a lot of Amazon shares, a sizable cash paymemt in the region of $2 billion, or some combination of the two.

With Apple’s iPhone satellite functionality relying on Globalstar, the deal announcement also includes a sizable section about what will happen to Apple’s customers. For the moment, it seems to be not much at all.

Under the deal, Apple and Amazon made an agreement to maintain satellite connectivity for current and future iPhone and Apple Watch features. This includes using Globalstar’s existing and planned upcoming low Earth orbit satellite constellations.

However, more is also planned. The deal also mentions that Amazon will collaborate with Apple on future satellite services using Amazon Leo’s expanded satellite network.

SVP of Worldwide Product Marketing Greg Joswiak said in the statement that Apple and Amazon have a “long and proven track record of working together through Amazon’s core infrastructure services,” and that Apple looks forward to future collaboration.

More satellite access for users

For current iPhone users, the deal won’t matter at all for the immediate future. Apple’s agreement with Amazon means that the existing Globalstar network will continue to operate and that the iPhone’s satellite functionality will work as usual with no real changes.

As Amazon Leo absorbs Globalstar over time, this should result in a better experience for consumers. With more satellites in the sky, connectivity should become a lot easier and with a stronger connection overall.

With there being very limited bandwidth available, this may even mean customers will have more available in the future. Not enough to handle video calls, but certainly to make messages travel to space a little quicker.

The agreement to collaborate also means more satellite features could be on the way to users. What they could be remains to be seen, but there have been hints.

In November, there was mention of Apple working on enhancing satellite communications to a level that you could keep your iPhone in your pocket. Currently, users must point their iPhone at specific points in the sky to establish a connection.

There have also been patents on the subject too. In February, one example surfaced showing a phased array antenna in an iPhone case that could be aimed, instead of the iPhone.