Apple will invest up to $1.5 billion in Globalstar to fund the expansion of its iPhone communications services, the satellite provider said in a regulatory filing on Friday.
Globalstar shares jumped more than 30%, while Apple shares fell about 1.4% a day after it forecast tepid quarterly revenue growth.
Under the financing agreement, Apple will commit $1.1 billion in cash and will also purchase 20% of Globalstar’s shares for $400 million. The satellite company said it would use part of the funds to pay off debt.
The move is another in a series of partnerships between space companies and mobile service providers looking to provide satellite connectivity to customers in areas with limited network access.
Globalstar also said it would 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 allows Apple users to send emergency messages from remote areas.
© Thomson Reuters 2024
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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