Apple won't be holding onto its 20% stake in Globalstar once Amazon's acquisition of the satellite firm concludes, with the shares set to be held by a "Grapefruit" company instead.
On April 14, Amazon agreed to acquire satellite service provider Globalstar in an $11 billion deal. The purchase adds Globalstar to Amazon's existing satellite portfolio, which includes its Leo business.
However, Apple holds 20% of the shares in Globalstar, under a $1.1 billion commitment from 2024, which included a $400 million share purchase. Once the deal concludes, it won't be holding onto the shares, nor the accompanying voting rights.
In a filing with the FCC dated May 26, 2026, Amazon and Globalstar ask the regulator to permit the transfer of licenses and authorizations between the two companies. This is one of the key elements needed for the acquisition to complete in the United States.
The filing, spotted by PCMag, explains that Amazon is creating a subsidiary to complete the merger. The subsidiary is being called "Grapefruit Acquisition Sub II, LLC."
Apparently, someone in Amazon business development has a sense of humor.
Grapefruit will acquire Apple's 20% in equity and voting interests for Globalstar. In the end, Globalstar, Inc. will cease to exist, with Grapefruit managing Globalstar USA LLC, Globalstar Licensee LLC, and GUSA Licensee LLC.
Satellite service continues
The document doesn't state what Apple will receive in exchange, if anything, from the transfer and stock changes. However, it won't be left out in the cold.
During the April announcement, Amazon insisted that Apple won't be affected at all. An agreement was made for satellite connectivity to be maintained for current and future Apple Watch and iPhone features.
That includes features like Emergency SOS via Satellite and Roadside Assistance via Satellite.
That included using Globalstar's existing and planned low Earth orbit satellite constellations. Amazon also said it would work with Apple to come up with future satellite services using Amazon Leo's expanded satellite network.
In the FCC filing, Amazon reiterates its commitment to supply service and for improvements in the future. However, Amazon also plans to use its Globalstar purchase with other smartphone and mobile device producers and mobile carriers.
