Apple to Invest Up to $1.5 Billion in Globalstar to Expand Satellite Connectivity
As part of the agreement, Apple will provide $1.1 billion in cash and acquire a 20% stake in Globalstar for an additional $400 million. A portion of this funding will help Globalstar reduce its debt.
Apple plans to invest up to $1.5 billion in satellite provider Globalstar to expand communication services for iPhones, according to a regulatory filing from Globalstar on Friday. Following this announcement, Globalstar’s shares surged by more than 30%, while Apple’s shares dipped about 1.4%, a day after it reported modest revenue growth expectations.
As part of the agreement, Apple will provide $1.1 billion in cash and acquire a 20% stake in Globalstar for an additional $400 million. A portion of this funding will help Globalstar reduce its debt.
This partnership reflects a broader trend among space and telecom companies working together to offer satellite connectivity in areas with limited network access. Under the deal, Globalstar will dedicate 85% of its network capacity to Apple. The transaction is set to close on Tuesday.
Apple initially partnered with Globalstar in 2022, introducing a feature that enables iPhone users to send emergency messages from remote locations.
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