On November 1, 2024, Apple (AAPL.O) announced plans to invest up to $1.5 billion in Globalstar (GSAT.A), a satellite communications provider, to enhance its iPhone communication services. The investment comprises a commitment of $1.1 billion in cash and a $400 million purchase of a 20% equity stake in Globalstar. This news led to a significant increase in Globalstar’s shares, which rose over 30%, while Apple’s shares experienced a slight decline of about 1.4% following a forecast of modest quarterly revenue growth.
Globalstar indicated that a portion of the investment will be allocated to reduce its existing debt. As part of the agreement, the satellite provider will dedicate 85% of its network capacity to Apple. The deal, expected to close on the upcoming Tuesday, is part of a broader trend of partnerships between space and mobile service providers aiming to offer satellite-based connectivity in areas with limited network access.
This collaboration builds on a previous partnership established in 2022, where Apple users gained the ability to send emergency messages from remote locations via Globalstar’s satellite network. The latest investment reflects Apple’s ongoing commitment to expanding its communication capabilities, particularly in underserved regions.
