Are you keeping up with the latest business news? Well, if you’re not, you’re missing out on some exciting developments in the tech world. Apple recently committed a whopping $1.5 billion to satellite communications company Globalstar to fund the expansion of iPhone services. This deal, which includes $1.1 billion in cash and a 20% equity stake, is set to close on Tuesday.
But why is Apple investing so heavily in Globalstar? It turns out that Apple has been relying on Globalstar’s services for the 2022 rollout of iPhone emergency satellite texting. This is just one of several efforts in the direct-to-device (D2D) satellite connectivity market, with SpaceX and other companies also working on similar projects.
The news of Apple’s investment sent Globalstar’s stock soaring by as much as 36% in Friday trading. In the filing, Globalstar revealed that it will continue to allocate about 85% of its network capacity to Apple. The new funds will allow Globalstar to purchase new satellites and expand its ground infrastructure, further solidifying its position in the satellite communications market.
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