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 will invest up to $1.5B in Globalstar to enhance iPhone satellite connectivity expansion, including $400M for 20% equity. Globalstar network capacity allocation dedicates 85% to Apple, boosting Apple satellite communication deal for remote area messaging.
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
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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
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