Apple to Invest $1.5B in Globalstar for IPhone Connectivity

In a significant development for the tech and satellite industries, Apple Inc. (AAPL) has announced plans to invest up to $1.5 billion in Globalstar Inc. (GSAT) to support the expansion of its iPhone communication services. This investment, revealed in a regulatory filing by Globalstar on Friday, marks a strategic partnership aimed at improving satellite-based connectivity, particularly in areas with limited network access.

Under the terms of the funding agreement, Apple will inject $1.1 billion in cash and acquire a 20% equity stake in Globalstar for an additional $400 million. Globalstar intends to utilize a portion of these funds to reduce its existing debt, strengthening its financial position for future growth.

The announcement sparked a surge in Globalstar’s stock, which rose over 30% following the news, while Apple’s shares saw a slight decline of approximately 1.4% after the company forecasted modest quarterly revenue growth.

As part of this partnership, Globalstar will allocate 85% of its network capacity to Apple, underscoring the tech giant’s commitment to enhancing its satellite communication capabilities. This collaboration builds on Apple and Globalstar’s previous partnership initiated in 2022, which enabled iPhone users to send emergency messages from remote locations.

The deal is anticipated to close on Tuesday, marking another step in the growing trend of partnerships between satellite providers and mobile service companies to enhance connectivity solutions for customers globally.