Amazon to merge with Globalstar, become iPhone’s primary satellite provider

In a significant move to enhance its Amazon Leo satellite network, Amazon has unveiled plans to merge with satellite operator Globalstar. This merger marks Amazon's strategic effort to strengthen its position against competitors like SpaceX’s Starlink. The deal, valued at $11.6 billion, will enable Amazon to enter the Direct-to-Device (D2D) market, where satellite technology provides direct connectivity to mobile devices. Globalstar has already established a partnership with Apple, allowing it to provide satellite messaging services for iPhones. Amazon's recent announcement also includes a collaboration with Apple to offer satellite connectivity for current and future iPhone and Apple Watch models. This partnership positions Amazon as the primary satellite service provider for these devices, as noted by Panos Panay, Amazon’s senior VP of devices and services. The Globalstar service currently supports iPhone 14 and newer models, along with the Apple Watch Ultra 3. Users benefit from features that allow them to communicate with emergency services, connect with friends and family, request roadside assistance, and share their locations. Amazon affirmed its commitment to maintain support for these Apple devices and to collaborate on future satellite services utilizing the expanded capabilities of the Amazon Leo network. In terms of the merger, Globalstar shareholders will have the option to choose between $90 in cash per share or an equivalent amount in Amazon stock, totaling approximately $11.57 billion. Interestingly, Globalstar previously engaged in discussions with SpaceX regarding a potential acquisition last year. In a statement, Greg Joswiak, Apple’s senior VP of worldwide product marketing, expressed enthusiasm about the collaboration, emphasizing the shared history between Apple and Amazon. He reassured users that they would continue to have access to essential satellite features that help keep them connected and safe, even when off the grid.