Satellite communications company Globalstar listed on the Nasdaq on Tuesday after delisting from the New York Stock Exchange.
“We did a reverse split — we’re a multibillion-dollar company but our stock price was down in the dollar-ish range,” CEO Paul Jacobs told CNBC’s Becky Quick on “Squawk Box.” “And people thought of us as a penny stock, and some investors couldn’t invest in us, so we’re here sort of in conjunction with that,” Jacobs added.
Jacobs and Globalstar also rang the opening bell at the Nasdaq on Tuesday morning. The stock rose more than 10% in midday trading.
“Most of the companies that I’ve been involved with are tech innovators, and they’re on the Nasdaq,” Jacobs said.
Globalstar signed a $1.5 billion deal in November with Apple to fund the expansion of iPhone services. In 2022, Globalstar rolled out a feature with iPhones that enabled emergency satellite texting.
The satellite provider also signed a $1.1 billion deal with MDA Space on Monday, making the latter company the prime contractor for Globalstar’s next-generation low Earth orbit constellation.
The company is working on enabling satellite features that would allow customers to use their phones in areas with no cell service, a move that Elon Musk’s Starlink has also pursued in conjunction with T-Mobile.
“We’ve already been working on the satellites,” Jacobs said. “We’ve been in it for a while already.”
The pricing of the venture for customers remains an “unproven business model,” Jacobs added, as the companies continue to optimize customers’ needs.
NBA
Jacobs, who is also the vice chairman of the National Basketball Association’s Sacramento Kings, said he sees a lot of investment going into the NBA as valuations continue to rise.
“The product is extremely good,” Jacobs said. “And we’ve opened it up to more investors as well — funds can invest now.”
Jacobs said the Sacramento Kings also had a chance at getting basketball star Luka Doncic earlier but ultimately passed over the player, whose trade to the Los Angeles Lakers caused waves across the sports industry.
“I think the NBA is in a good position,” he said. “You never know how it’s going to go. I’m obviously not going to sit here and say I can predict the future perfectly, but the NBA is in a great position,” Jacobs added.
