Apple will invest up to $1.5 billion in Globalstar to fund the expansion of its iPhone communication services. The satellite provider said in a regulatory filing that Apple will commit $1.1 billion in cash and also purchase 20% equity in Globalstar for $400 million.
The move is another in a line of partnerships between space firms and mobile service providers looking to offer satellite-based connectivity to customers in regions with limited network access. This funding boost also aligns with Apple's interest in satellite technology, enabling iPhone connectivity solutions independent of traditional telecom networks.
Post the announcement, shares of Globalstar jumped over 30%, while Apple was down around 1.4% a day after it forecast tepid quarterly revenue growth.
Globalstar also said it will allocate 85% of its network capacity to Apple. The deal is expected to close on Tuesday.
As part of the arrangement, Globalstar is expected to deploy new satellites and other infrastructure necessary to meet Apple's connectivity requirements.
The iPhone maker partnered with Globalstar in 2022 for a feature that would allow Apple users to send emergency messages from remote areas.
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