Apple endorses the ~$11.6B Amazon-Globalstar deal, noting that it has a "proven track record" with Amazon infrastructure; Apple holds a ~20% stake in Globalstar
Amazon.com Inc.'s takeover of Globalstar Inc. is poised to benefit one of the company's biggest rivals in hardware devices: Apple Inc.
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Apple Backs Amazon's $11.6B Globalstar Takeover — And Profits From It
Apple endorses Amazon's massive Globalstar acquisition while holding a ~20% stake in the satellite company.
Apple just gave a thumbs-up to a rival's mega-deal — and stands to cash in handsomely. The iPhone maker has endorsed Amazon's roughly $11.6 billion takeover of satellite communications firm Globalstar, in which Apple holds approximately a 20% stake.
Apple pointed to Amazon's "proven track record" with infrastructure as justification for backing the acquisition. That's a notable endorsement from a company that competes fiercely with Amazon across hardware categories.
The deal creates a fascinating dynamic. Amazon gets Globalstar's satellite capabilities. Apple gets a massive payday on its existing stake while praising the buyer's operational chops. Two of the world's biggest tech rivals, linked by a satellite company neither fully controls.
For Apple, this is a win-win: pocket the returns and let Amazon handle the heavy lifting of running a satellite network.