Globalstar and Apple: Satellite Collaboration Sends Stock Prices Soaring

Globalstar shares have experienced an impressive 64 percent surge in value after the company announced an expanded partnership with technology giant Apple. This strategic alliance entails the expansion of Globalstar's mobile satellite network, including the launch of new satellites, enhancement of ground infrastructure, and expansion of global licenses. Globalstar's subsidiary, Globalstar SPE, will be responsible for the expanded network. Under this agreement, Apple will provide up to $1.1 billion for infrastructure investments and will also assume Globalstar's 13% Senior Notes due in 2029. Additionally, Apple plans to acquire a 20 percent stake in Globalstar SPE by purchasing 400,000 Class B units for $400 million, which is expected to be completed by November 5, 2024. With this network expansion, Globalstar anticipates more than doubling the company's annual revenue starting in 2024. Moreover, Globalstar is planning an investor day in December to present its strategic vision for the future. This agreement builds on previous investments by Apple in Globalstar, including a $252 million funding in 2023 to cover the production costs of satellites and other expenses related to the 'Emergency SOS' satellite feature, which was first introduced with the iPhone 14.