Globalstar signs deal worth up to $64M with SpaceX, filing shows
NicoElNino
Internet satellite operator Globalstar (NYSE:GSAT) said in a regulatory filing this week that it has signed a deal with Elon Musk's SpaceX for $64M.
Globalstar entered into the launch services agreement with SpaceX on August 28 and will see SpaceX launch a set of satellites into low Earth orbit in 2025 to replace Globalstar's existing satellite constellation.
The majority of Globalstar's (GSAT) expenses - in this case, 95% - are being reimbursed by its "partner" for satellite launch costs. The partner is of course, Apple (NASDAQ:AAPL), which has provided $252M to Globalstar in exchange for satellite service on some of its iPhones.
In September 2022, Apple (AAPL) unveiled the Emergency SOS satellite feature for the iPhone 14 Pro and Pro Max. The feature lets users who are out of range from cell towers, access the satellites by pointing the phone at the sky and connect to one of Globalstar's (GSAT) satellites.
In November, Apple (AAPL) said it would spend $450M on U.S. infrastructure as the tech giant gets its Emergency SOS texting feature for the iPhone 14 off the ground, with the "majority" of the money going towards Globalstar (GSAT).
Earlier this week, Globalstar (GSAT) announced a series of management changes, including bringing on former Qualcomm (QCOM) CEO Paul Jacobs as its new CEO.

More on Globalstar and the iPhone

Apple: Incredible Recovery Lifting Sentiments Ahead Of iPhone 15 Launch
Apple raising prices on iPhone 15 Pro, Pro Max is warranted: Goldman Sachs
Globalstar gains for second day as B. Riley sees 'win' in new management
Apple has resolved some iPhone 15 issues, Pro Max mass production lags: analyst