Apple committed about $1.5 billion to satellite communications company Globalstar to fund the expansion of iPhone services, the companies disclosed in a securities filing on 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 been spending hundreds of millions for Globlastar services, which enabled the 2022 rollout of iPhone emergency satellite texting.
Globalstar stock jumped as much as 36% in Friday trading from its previous close at $1.05 a share.
Persons:
Apple
Organizations:
Globalstar, SpaceX, AST