Apple to Invest $1.5 Billion in Globalstar

At Six Colors, Dan Moren writes:

If you had any idea that satellite connectivity isn’t a key part of Apple’s strategy, well, the company’s satellite partner Globalstar has disclosed changes to its deal with Apple, including a new influx of $1.1 billion from Apple tied to capital improvements, and $400 million in equity, which gives Apple a 20-percent stake in the company.

In return, Globalstar will continue to allocate 85% of its network capacity to Apple’s satellite features. Although Globalstar will retain control of the board of managers, I assume Apple’s 20% share entitles it to more of a say in the company’s future direction.

Read original article