apple Approximately $1.5 billion committed to satellite communications companies global star To fund the expansion of iPhone services, the companies disclosed 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 used to repay the satellite company’s current debt, and a 20% equity stake. The deal is expected to close on Tuesday.
Apple has expenditure Hundreds of millions of dollars spent on Globlastar service, leading to launch in 2022 iPhone Emergency Satellite Text Message.
This is one of several direct-to-device (D2D) efforts that satellite connectivity market – Servicing unmodified devices such as smartphones directly from space – Other projects underway space exploration technologies corp., AST space movement, iridium, Link and echo star.
Globalstar shares rose 31.4% in Friday trading to close at $1.38 per share.
exist FilingGlobalstar noted that it will continue to allocate about 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 ordered up to 26 satellites to supplement and upgrade its low-Earth orbit constellation.
