Globalstar Shares Climb 31% Following Reports of Major Apple Investment

In a regulatory filing on Friday, the firms revealed that Apple had committed around $1.5 billion to Globalstar, a satellite communications company, to finance the expansion of iPhone services. The internet giant’s agreement with Globalstar includes a 20% stock investment and $1.1 billion in cash, of which $232 million will be used to pay down the satellite company’s existing debt. Tuesday is when the deal is anticipated to close.

Apple’s New Move: $1.5 Billion Investment in Globalstar to Enhance iPhone Features

As a result of rumors that Apple would invest $1.5 billion, Globalstar’s stock is rising in Friday afternoon trading. In Friday’s trade, Globalstar‘s shares surged 31.4%, closing at $1.38 per share. Given that the tech giant currently uses Globalstar’s satellite network for its phones, this reported investment represents a substantial extension of their current collaboration.

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