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Apple to Invest Up to $1.5 Billion in Globalstar for Satellite Coverage Expansion

Apple to Invest Up to $1.5 Billion in Globalstar for Satellite Coverage Expansion

Globalstar says it will allocate 85 percent of its network capacity to Apple.

By Reuters | Updated: 2 November 2024 10:58 IST

Apple to Invest Up to $1.5 Billion in Globalstar for Satellite Coverage Expansion

Photo Credit: Reuters

Apple's deal with Globalstar is expected to close on November 5

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Highlights

Apple will invest up to $1.5 billion in its satellite partner Globalstar
Satellite connectivity was first introduced on the iPhone 14
Apple is set to purchase 20 percent equity in Globalstar for $400 million

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 on Friday.

Shares of Globalstar jumped over 30%, while Apple was down around 1.4% a day after it forecast tepid quarterly revenue growth.

Under the funding agreement, Apple will commit $1.1 billion in cash and also purchase 20% equity in Globalstar for $400 million. The satellite company said it will use a portion of the funds to pay down debt.

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The move is another in a line of partnerships between space firms and mobile service providers looking to provide satellite-based connectivity to customers in regions with limited network access.

Globalstar also said it will allocate 85% of its network capacity to Apple. The deal is expected to close on Tuesday.

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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(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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