Apple has committed around $1.5 billion to the satellite communications company Globalstar To finance the expansion of iPhone services, the companies announced in a securities filing on Friday.
The tech giant's deal with Globalstar includes $1.1 billion in cash, $232 million of which will be applied to the satellite company's current debt, as well as a 20 percent equity stake. The deal is expected to close on Tuesday.
Apple has already spent hundreds of millions on Globlastar services, which enabled the launch of iPhone emergency satellite texting in 2022.
It's one of several efforts in the direct-to-device, or D2D, satellite connectivity market that provides services to unmodified devices like smartphones directly from space. In addition, other SpaceX projects are underway, AST SpaceMobile, iridium, Lynk And EchoStar.
Globalstar shares rose as much as 36% in Friday trading from its previous closing price of $1.05 per share.
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In the filing, Globalstar noted that it will continue to provide approximately 85% of its network capacity to Apple.
The new funding will allow Globalstar to purchase new satellites and expand its ground infrastructure. Globalstar currently operates 31 satellites and has already ordered up to 26 satellites to replenish and enhance its low Earth orbit constellation.
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