Tech gaint Apple Inc. is gearing up to invest as much as .5 billion in satellite provider Globalstar, aiming to expand its satellite-based communication capabilities for iPhones, according to a recent regulatory filing.
Globalstar’s shares surged by over 30%, while Apple’s stock slipped around 1.4% after a cautious revenue forecast for the next quarter. The funding package includes a .1 billion cash infusion from Apple, along with a 0 million equity investment giving Apple a 20% stake in Globalstar. Part of this funding will also go towards paying down Globalstar’s debt.
This investment marks Apple’s continued efforts to improve connectivity options for all of its users, particularly in remote areas where conventional networks fall short. Globalstar will reserve 85% of its network capacity exclusively for Apple, a move aimed at enhancing communication services for iPhone users. The partnership builds on an initial collaboration in 2022, which introduced a feature allowing iPhone users to send emergency messages when out of cell service range.
The transaction is set to close on Tuesday, strengthening the alliance between the tech company Apple and the satellite provider Globalstar to push forward global connectivity solutions.
Globalstar’s shares surged by over 30%, while Apple’s stock slipped around 1.4% after a cautious revenue forecast for the next quarter. The funding package includes a .1 billion cash infusion from Apple, along with a 0 million equity investment giving Apple a 20% stake in Globalstar. Part of this funding will also go towards paying down Globalstar’s debt.
This investment marks Apple’s continued efforts to improve connectivity options for all of its users, particularly in remote areas where conventional networks fall short. Globalstar will reserve 85% of its network capacity exclusively for Apple, a move aimed at enhancing communication services for iPhone users. The partnership builds on an initial collaboration in 2022, which introduced a feature allowing iPhone users to send emergency messages when out of cell service range.
The transaction is set to close on Tuesday, strengthening the alliance between the tech company Apple and the satellite provider Globalstar to push forward global connectivity solutions.
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