Apple plans to invest up to $1.5 billion in Globalstar to enhance its satellite coverage

Apple will spend up to $1.5 billion in Globalstar to expand its iPhone communications services, the satellite company announced in a regulatory filing on Friday.

Globalstar stock rose more than 30%, while Apple stock fell nearly 1.4% a day after expecting sluggish quarterly revenue growth.

Under the funding arrangement, Apple will invest $1.1 billion in cash and purchase 20% of Globalstar’s stock for $400 million. The satellite business stated that a portion of the proceeds will be used to service debt.

This is the latest in a series of partnerships between space corporations and mobile service providers aimed at providing satellite connection to users in areas with restricted network access.

Globalstar also announced that Apple will receive 85% of its network capacity. The transaction is anticipated to conclude on Tuesday.

In 2022, Apple teamed with Globalstar to develop a function that would allow customers to send emergency messages from faraway locations.