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Apple Invests $1.5 Billion in Globalstar, Acquires 20% Stake to Expand iPhone Satellite Services

Nov 1, 2024, 04:14 PM

Apple Inc. is expanding its partnership with satellite services provider Globalstar Inc., committing up to $1.5 billion to enhance satellite coverage and services for its devices. The agreement includes a $1.1 billion cash prepayment from Apple to Globalstar for infrastructure improvements, including building a new Mobile Satellite Services (MSS) network, constructing a new satellite constellation, and expanding ground infrastructure. Additionally, Apple is purchasing a 20% equity stake in Globalstar worth $400 million. This investment aims to bolster Apple's satellite connectivity features, such as the Emergency SOS via Satellite service available on iPhones, by improving satellite capacity and coverage. Globalstar expects its total annual revenue to more than double in the first annual period following the launch of the expanded satellite services. Following the announcement, Globalstar's stock surged by as much as 58%.