Apple to invest up to $1.5 billion more in Globalstar for satellite coverage expansion
Apple is making a significant investment in satellite technology. The company will invest up to $1.5 billion in Globalstar to expand its iPhone communication services, as announced in a regulatory filing on Friday. This investment will allow Apple to further enhance its satellite-based emergency messaging and other connectivity features.
Reuters:
Under the funding agreement, Apple will commit $1.1 billion in cash and also purchase 20% equity in Globalstar for $400 million. The satellite company said it will use a portion of the funds to pay down debt.
Globalstar also said it will allocate 85% of its network capacity to Apple. The deal is expected to close on Tuesday.
The iPhone maker partnered with Globalstar in 2022 for a feature that would allow Apple users to send emergency messages from remote areas.
MacDailyNews Note: On February 28, 2023, Apple lent Globalstar $252 million to help cover upfront costs for replenishing its low Earth orbit (LEO) constellation to support Apple’s groundbreaking safety service, “Emergency SOS via satellite.”
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