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Investing.com -- Globalstar (NYSE:GSAT) stock rose 8% on Thursday following reports that the company’s chairman, James Monroe, has discussed the possibility of selling the satellite communications firm for more than $10 billion with associates.
The potential sale price mentioned by Monroe would represent a significant premium over Globalstar’s current market capitalization of approximately $5.3 billion, according to a report by The Information. The same report suggested that such a deal could indicate Globalstar and its major customer Apple (NASDAQ:AAPL) are seeking greater independence from each other.
Globalstar currently provides satellite connectivity for Apple’s iPhone emergency services, allowing users to send text messages to emergency services and share their location when outside cellular coverage. Apple has invested roughly $2 billion in Globalstar over the past three years, making it the satellite company’s most crucial customer.
The report also revealed that SpaceX, Elon Musk’s aerospace company, has added support in its new satellite designs for the same radio spectrum Apple uses for iPhone satellite features. This development could potentially allow SpaceX’s Starlink to deliver satellite communications to existing Apple devices when its next-generation satellite constellation becomes operational.
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