Amazon’s New ‘Grapefruit’ Subsidiary Is Squeezing Apple Out of Globalstar
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Apple will be giving up its 20% stake in satellite service provider Globalstar once Amazon’s $11.6 billion acquisition of the firm is final. Apple’s former shares (and the accompanying voting rights) will instead be held by a “citrusy” new Amazon subsidiary.
As iDrop News reported on April 14, Amazon and Globalstar have announced a multi-billion dollar deal where the retail giant will be acquiring the satellite operator. Amazon said that it planned to use Globalstar’s satellites, radio frequency spectrum, and operational expertise to expand its own satellite internet service, Amazon Leo, with plans to add Direct-to-Device (D2D) services to its low Earth orbit satellite network.
There was a sticking point though, as Apple holds a 20% stake in Globalstar, thanks to a $1.5 billion deal in 2024 that included $400 million in shares of the satellite firm. Now, it looks like that issue has been resolved. Once the ink on the deal is dry, Apple will no longer hold the shares — or the voting rights that come along for the ride.
In a May 26, 2026 filing with the US Federal Communications Commission (FCC), Amazon and Globalstar are seeking approval for the transfer of licenses and authorizations between the two companies to facilitate the acquisition.
The filing, first spotted by PCMag, reveals that Amazon is creating a subsidiary called “Grapefruit Acquisition Sub II, LLC” to complete the merger. The citrusy subsidiary will acquire Apple’s 20% equity and voting interests in Globalstar, Inc., which will cease to exist. Grapefruit will manage Globalstar USA LLC, Globalstar Licensee LLC, and GUSA Licensee LLC.
While the filing doesn’t specify what Apple will receive as part of the deal, Apple and its customers will still have access to the former Globalstar’s satellite services.
In the original acquisition announcement in April, Amazon confirmed that it had entered an agreement with Apple to continue providing iPhone and Apple Watch satellite services on the new Amazon Leo network, including Emergency SOS via satellite, Messages via satellite, Roadside Assistance via satellite, and more.
Apple will be able to use Globalstar’s existing and planned low Earth orbit satellite constellations, and it will work with Amazon to develop future satellite services that will use Amazon Leo’s expanded satellite network.
In the April announcement, Greg Joswiak, Apple’s senior vice president of Worldwide Marketing said “Apple and Amazon have a long and proven track record of working together through Amazon’s core infrastructure services, and we look forward to building on that collaboration with Amazon Leo. This ensures our users will continue to have access to the vital satellite features they have come to rely on, including Emergency SOS, Messages, Find My, and Roadside Assistance via satellite, so they can stay safe and connected while off the grid.”
Apple is reportedly working on several new satellite-based features and services for its devices, including 5G via satellite, Apple Maps via satellite, sending photos in Messages while connected via Satellite, satellite weather, a third-party developer satellite API, and more.
However, Apple may have to compete for space on Amazon’s new satellite network in the near future. As pointed out by Mactrast, the FCC filing states that while Amazon will continue its commitment to supply service and improvements for Apple in the future, Amazon also plans to utilize its Globalstar purchase to work with other smartphone and mobile device producers and mobile carriers.
