Globalstar Inc. (GSAT) saw its stock price soar nearly 69% in pre-market trading on Thursday, November 1, 2024, following the announcement of a major expansion of its partnership with tech giant Apple Inc. (AAPL).
According to filings with the U.S. Securities and Exchange Commission, Globalstar and Apple have agreed to amendments that will significantly increase the satellite communications services Globalstar provides for Apple's products and services. The deal involves the creation of a new mobile satellite services network, including a new satellite constellation, expanded ground infrastructure, and increased global licensing.
As part of the agreement, Apple will make upfront cash prepayments totaling up to $1.1 billion to Globalstar to fund the infrastructure expansion. Additionally, Apple will purchase a 20% equity stake in Globalstar's satellite services subsidiary for $400 million. Globalstar has stated that it expects the deal to more than double its projected annual revenue levels for 2024 during the first full year after the expanded services are launched.
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