DUBAI: In a strategic move to enhance its satellite connectivity capabilities, Apple Inc. (AAPL) announced on Friday that it will invest up to $1.5 billion in Globalstar Inc. (GSAT).
This significant commitment includes $1.1 billion in cash and a $400 million acquisition of a 20% equity stake in the satellite communications company, as detailed in a recent regulatory filing.
The announcement sent shares of Globalstar soaring by more than 30%, reflecting strong investor confidence in the potential for enhanced connectivity solutions. In contrast, Apple’s stock experienced a modest dip of approximately 1.4%, attributed to forecasts of slow quarterly revenue growth.
A portion of the funding from this partnership will be allocated to reducing Globalstar’s debt, showcasing a dual focus on growth and financial stability.
The collaboration comes at a time when both technology and satellite firms are increasingly looking to improve connectivity in underserved areas lacking reliable network access.
Under the terms of the agreement, Globalstar will dedicate 85% of its network capacity to Apple, paving the way for improved communication services specifically designed for iPhone users.
The deal is expected to finalize on Tuesday, marking a new chapter in satellite-based communication services for Apple’s vast customer base.
This partnership builds on the previous collaboration between Apple and Globalstar in 2022, which introduced a feature allowing users to send emergency messages from remote locations. This prior success has laid the groundwork for a stronger alliance in the satellite communication space, reflecting Apple’s commitment to expanding its services and ensuring seamless connectivity for users in all environments.
