Apple Invests $1.5 Billion in Globalstar to Expand Satellite Connectivity

Apple Inc. (AAPL.O) has unveiled plans to invest up to $1.5 billion in Globalstar Inc. (GSAT.A), as detailed in a regulatory filing on Friday.

This substantial investment consists of $1.1 billion in cash and a $400 million acquisition of a 20% equity stake in Globalstar, demonstrating Apple’s strong commitment to enhancing satellite connectivity for its customers.

In response to the announcement, Globalstar’s shares jumped by over 30%, while Apple’s stock experienced a slight decline of around 1.4%, amid expectations of modest quarterly revenue growth. Globalstar noted that some of the newly acquired funds would be used to reduce its debt burden.

This partnership aligns with a broader movement among tech and satellite companies to improve connectivity in areas beyond traditional network coverage. As part of the agreement, Globalstar will allocate 85% of its network capacity to Apple, aiming to bolster communication services for iPhone users. The deal is scheduled for completion on Tuesday.

Apple and Globalstar previously joined forces in 2022, launching a feature that enables iPhone users to send emergency messages from remote locations, further strengthening their collaboration in satellite communications.

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