A satellite services company is up 31% after announcing Apple is taking a stake
Apple is investing further in infrastructure for its satellite messaging features for iPhones, which enables texting without WiFi or cell service.
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- Globalstar Inc. closed up over 31% after Apple invested $1.1 billion in a satellite expansion deal.
- Apple is taking a 20% stake under the new agreement, which follows a $450 million deal in 2022.
- Apple's iOS 18 now supports non-emergency satellite messaging.
A satellite services company got a boost on Friday following its disclosure that Apple is taking a stake as part of a new investment deal.
Shares of Globalstar Inc. closed up over 31% on the news that the iPhone giant had agreed to expand its deal with an additional $1.1 billion investment.
The partnership has been extended to cover a new satellite constellation and more ground infrastructure, Globalstar disclosed in an SEC filing that was made public on Friday. Apple is also set to acquire a 20% equity stake in Globalstar for $400 million, and the deal is expected to close on November 5.
The new deal expands on the tech giant's previous $450 million investment in 2022, which went primarily to Globalstar to help support Apple's Emergency SOS feature that first launched with iPhone 14 models.
Emergency SOS enables satellite messaging to emergency services when an iPhone is not in range of WiFi or cellular connectivity. The feature was recently used by victims of Hurricane Helene.
Apple since looked to offer more satellite-based texting features. Apple
Most recently, Apple's iOS 18, which launched in September, introduced non-emergency satellite messaging, enabling iPhone users to send and receive text messages, emojis, and tap-backs, still with end-to-end encryption.
Although the emergency service is currently free, with Apple extending its free period for another year, its non-emergency counterpart may see pricing added as Apple looks to grow its services business.
Neither Globalstar nor Apple responded to a request for comment from Business Insider.
