Apple to invest up to $1.5 billion in Globalstar for satellite coverage expansion
Illustration shows Apple and Globalstar logos · Reuters
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.
Apple plans to invest up to $1.5 billion in Globalstar to enhance its iPhone communication services. The deal includes $1.1 billion in cash and a $400 million purchase of 20% equity, with Globalstar allocating 85% of its network capacity to Apple.
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
Read More : Commercial satellite will see CO2 super-emitters
of the funds to pay down debt. 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.
Source: https://finance.yahoo.com
Previous Story
- England counts down to western Europe’s first satellite...
- UK-built Forum satellite will measure greenhouse effect
- Apple Working on Emergency Satellite Features for iPhones,...
- Eight satellite job centres to help job seekers...
- Satellite, submarine cable business may open to private...
- China Launches New Satellite for Monitoring Environment