Following the announcement, Globalstar's shares surged by over 30%, while Apple experienced a decline of approximately 1.4% after projecting modest revenue growth for the upcoming quarter.
As part of the funding arrangement, Apple will provide $1.1 billion in cash and acquire a 20% stake in Globalstar for $400 million. Globalstar indicated that a portion of the investment will be utilized to reduce its debt.
This initiative is part of a broader trend of collaborations between satellite companies and mobile service providers aimed at delivering satellite-based connectivity to users in areas with limited network coverage.
Additionally, Globalstar announced that it will dedicate 85% of its network capacity to Apple. The agreement is anticipated to be finalized on Tuesday.
In 2022, Apple and Globalstar formed a partnership to enable Apple users to send emergency messages from remote locations.