(Reuters) -Globalstar is exploring a potential sale and has held early discussions with Elon Musk’s SpaceX among other prospective buyers, Bloomberg News reported on Thursday, citing people familiar with the matter
Shares of the company, which makes low-earth orbit (LEO) satellites, soared 24% in afternoon trading.
SpaceX is one of the parties the company is speaking with, though other bidders could still emerge, according to Bloomberg News.
Globalstar is working with an investment bank to assist it in the sale process, Bloomberg reported. Globalstar has not yet made a final decision on pursuing a sale and could opt to remain independent.
Apple will possibly have a say in Globalstar’s future, according to the report.
Apple had invested up to $1.5 billion in Globalstar to fund the expansion of its iPhone communication services last year. Globalstar had also said it would allocate 85% of its network capacity to Apple.
Globalstar, SpaceX and Apple did not immediately respond to Reuters’ requests for comment.
The Information had earlier reported that Globalstar Chair James Monroe had told associates about potentially selling the company for more than $10 billion.
(Reporting by Juby Babu in Mexico City; Editing by Anil D’Silva)
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