Globalstar, the satellite company that powers Apple’s emergency communication services, has announced the appointment of Paul Jacobs as its new CEO. Paul Jacobs, 60, a prominent figure in the tech industry, will be taking over from David Kagan, who is retiring after leading the company for approximately five years.
In addition to his new role at Globalstar, Paul Jacobs also holds a position on the board of Arm, a chip company that is set to go public. Paul Jacobs’ impressive background includes co-founding XCOM Labs, a wireless tech startup, where he most recently served as the leader.
Globalstar has secured an exclusive deal with XCOM Labs, granting them access to crucial technologies and personnel. As part of this agreement, Globalstar will compensate XCOM through licensing fees, including the issuance of approximately 60 million common stock shares with an estimated value of $64 million.
Paul Jacobs is renowned for his previous tenure as CEO of Qualcomm, a position he held for nearly a decade, starting in 2005. During his leadership, Qualcomm played a pivotal role in becoming one of the primary suppliers to the global smartphone industry. However, Jacobs faced a departure from Qualcomm’s board in 2018 after revealing his aspiration to pursue an ambitious acquisition of the company, Reuters news report said.
According to Jay Monroe, Executive Chairman of Globalstar, the company has enjoyed a long-standing collaboration with the XCOM team spanning two decades. He noted that some of the key figures at XCOM had contributed to the development of Globalstar’s original system while working at Qualcomm.
Globalstar gained widespread attention through its partnership with Apple, enabling iPhones, including the iPhone 14, to transmit distress signals from areas without cellular network coverage. Apple allocated a substantial sum of $450 million to bolster its emergency SOS infrastructure, with a significant portion of the funds directed towards Globalstar. However, Apple did not specify the recipients of the remaining funds, leaving room for speculation within the industry.
This strategic partnership aligns Globalstar’s future prospects with one of the most influential companies globally, a move that carries significant weight in an industry often grappling with the challenges of profitability due to high maintenance costs.
Interestingly, in a parallel move, Iridium Communications joined forces with Qualcomm earlier in May to develop emergency SOS messaging tailored for Android users. This initiative sets up a competitive landscape, pitting Iridium Communications against Apple in the race to provide cutting-edge emergency communication services.
