Apple has announced a $1.5 billion investment in telecommunications provider Globalstar to improve connectivity for customers in regions with limited network access. Under the agreement, Apple will commit $1.1 billion in cash to Globalstar and purchase a 20% equity stake in the company for $400 million. Following this announcement, Globalstar’s shares surged by more than 30%, while Apple’s stock experienced a slight drop of approximately 1.4% within a day.
Mobile network providers and satellite service companies frequently partner to expand coverage and improve service quality for customers in remote areas. The collaboration between Apple and Globalstar initially began in 2022, introducing a feature that allows Apple users to send emergency messages from isolated locations. With this new agreement, Globalstar will allocate 85% of its network capacity exclusively to Apple.
Globalstar has stated that a portion of Apple’s investment will be used to reduce its debt, with the remaining funds allocated to purchase new satellites and enhance its infrastructure. This partnership is expected to bring strategic advantages to both companies, enabling improved global connectivity and emergency communication capabilities.
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