APPLE will invest up to US$1.5 billion in Globalstar to fund the expansion of its iPhone communication services, the satellite provider said in a regulatory filing on Friday (Nov 1).
Shares of Globalstar jumped over 30 per cent, while Apple was down around 1.4 per cent a day after it forecast tepid quarterly revenue growth.
Under the funding agreement, Apple will commit US$1.1 billion in cash and also purchase 20 per cent equity in Globalstar for US$400 million. The satellite company said it will use a portion of the funds to pay down debt.
The move is another in a line of partnerships between space firms and mobile service providers looking to provide satellite-based connectivity to customers in regions with limited network access.
Globalstar also said it will allocate 85 per cent 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 would allow Apple users to send emergency messages from remote areas. REUTERS
