Apple Inc. (AAPL.O) announced it will invest up to $1.5billion in Globalstar Inc. (GSAT.A), according to a regulatory filing released on Friday.
This investment includes $1.1billion in cash and a $400 million purchase of a 20% equity stake in Globalstar, marking a significant commitment to expanding satellite connectivity for its users.
Following the announcement, shares of Globalstar surged over 30%, while Apple's stock dipped approximately 1.4% amid forecasts of modest quarterly revenue growth. Globalstar indicated that part of the new funding will be allocated to reducing its debt.
The partnership aligns with a growing trend among technology and satellite firms aiming to enhance connectivity in areas lacking traditional network access. Under the terms of the agreement, Globalstar will dedicate 85% of its network capacity to Apple, facilitating improved communication services for iPhone users. The deal is set to finalize on Tuesday.
Apple and Globalstar previously collaborated in 2022 to introduce a feature allowing users to send emergency messages from remote locations, further solidifying their partnership in the satellite communication space.
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