SpaceX Eyes Globalstar Acquisition in Major Satellite Push
Elon Musk’s SpaceX has emerged as a potential buyer for Globalstar, the satellite communications company that powers Apple’s emergency texting service on iPhones. The company is currently exploring a sale and has held early discussions with SpaceX among other interested parties, according to reports from financial sources. Globalstar’s shares surged significantly following the announcement, reflecting investor enthusiasm about the potential transaction.
The move represents SpaceX’s aggressive expansion into satellite connectivity markets. Just weeks ago, SpaceX completed a major deal to acquire valuable radio spectrum from EchoStar, securing assets worth 17 billion dollars. This spectrum acquisition dramatically enhances SpaceX’s cellular Starlink capabilities, which currently compete directly with Globalstar’s existing services.
Apple holds significant influence over Globalstar’s future because the tech giant invested approximately 1.5 billion dollars in the company last year and secured a 20 percent ownership stake. Apple uses Globalstar’s network to deliver satellite texting and emergency response features to iPhone users in areas without cellular coverage. This strategic investment gives Apple a strong voice in any potential sale process.
The satellite industry faces intensifying competition as multiple companies race to provide smartphone connectivity from space. SpaceX’s cellular Starlink system already operates through T-Mobile’s network and offers capabilities beyond simple text messaging, including data transmission and video calls. Globalstar plans to upgrade its infrastructure through a next-generation satellite constellation, but competition from SpaceX remains formidable.
Recent developments suggest Apple may be open to working with SpaceX. Reports indicate that SpaceX has designed new satellites compatible with the same radio spectrum currently used by iPhones for satellite features. The company’s spectrum upgrade from the EchoStar deal promises to increase cellular Starlink capabilities by 20 times, potentially matching ground-based LTE performance.
Globalstar has not finalized any decision to sell and could choose to remain independent. Other telecommunications companies including AT&T and Verizon are also investing in competing satellite connectivity providers to challenge SpaceX’s market position.
