Apple's $1.5 billion investment in Globalstar's mobile satellite service (MSS) network will utilize SpaceX rockets for satellite launches. The deal, which includes a 20% stake in a Globalstar subsidiary, aims to expand Globalstar's MSS capabilities and support Apple's satellite-based features.
Globalstar's filings with the Federal Communications Commission (FCC) and the Securities and Exchange Commission (SEC) revealed details about the agreement. Apple's investment will enable Globalstar to retire debt and build its next-generation MSS satellite constellation, known as the "Extended MSS Network."
The partnership involves a $1.1 billion payment from Apple to cover launch and construction costs, as well as a $400 million equity purchase, giving Apple 20% control of Globalstar Licensee LLC, the entity managing the MSS satellite constellation.
SpaceX Confirmed as Launch Partner
Globalstar's latest SEC filing confirmed SpaceX as the launch services provider for the Extended MSS Network. The agreement includes fees tied to network costs, additional services, and performance bonuses. Globalstar had previously signed a deal with SpaceX in 2023 for satellite launches in 2025.
The launch window for the new satellites is scheduled between April and September 2025. These satellites will support Apple's satellite features for the iPhone and contribute to the growing low Earth orbit (LEO) network for satellite-based smartphone connectivity.
This is not investment advice. The author has no position in any of the stocks mentioned.
