Apple Inc. committed up to $1.5 billion to Globalstar to fund the expansion of iPhone communication services, as disclosed in a regulatory filing. This commitment includes $1.1 billion in cash, with $232 million allocated to retire Globalstar's current debt, and a 20% equity stake for Apple.
The agreement expands upon Apple's previous $450 million investment in 2022, which supported the iPhone emergency satellite texting feature. Globalstar will allocate approximately 85% of its network capacity to Apple under this new arrangement.
This significant investment will enable Globalstar to purchase new satellites and expand its ground infrastructure, including a new satellite constellation and increased global Mobile Satellite Services (MSS) licensing. Globalstar anticipates that this expanded partnership will more than double its annual revenue post-expansion.
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