Apple has committed about $1.5 billion to a satellite communications company World star to fund the expansion of iPhone services, the companies announced in a securities filing Friday.
The tech giant's deal with Globalstar includes $1.1 billion in cash, of which $232 million will go toward the satellite company's current debt, and a 20% equity stake. The deal is expected to close on Tuesday.
Apple has already spent hundreds of millions on Globlastar services, which enabled the rollout of iPhone emergency satellite text messaging in 2022.
It's one of several efforts in the market for direct-to-device, or D2D, satellite connectivity – which delivers service to unmodified devices like smartphones directly from space – with other projects underway from SpaceX, AST SpaceMobile, Iridium, Lynk And EchoStar.
Globalstar stock rose as much as 36% in Friday trading from its previous closing price of $1.05 per share.
In the filing, Globalstar noted that it will continue to allocate approximately 85% of its network capacity to Apple.
The new funds will allow Globalstar to purchase new satellites and expand its ground infrastructure. Globalstar currently operates 31 satellites and has already ordered 26 satellites to complement and upgrade its low Earth orbit constellation.
