Apple Commits $1.1 Billion and Takes 20% Stake in Globalstar; Shares Jump 58%

Nov 1, 2024, 01:27 PM

Apple has expanded its partnership with satellite service provider Globalstar, committing up to $1.1 billion to support the expansion of satellite capacity for iPhone messaging services. As part of the agreement, Apple will acquire a 20% ownership stake in Globalstar's satellite entity worth approximately $400 million. Globalstar's stock surged 58% after the announcement, rising up to 67% in pre-market trading. The deal includes prepayments for infrastructure and the build-out of a new satellite network. The expanded services are expected to more than double Globalstar's total annual revenue in 2024.