Globalstar Appoints Dr. Paul Jacobs as Chief Executive Officer; Announces Agreement to License XCOM Labs Technology

August 29, 2023

Globalstar, Inc. announced that Paul E. Jacobs, Ph.D., founder and CEO of XCOM Labs and former CEO and Executive Chairman of Qualcomm, has been appointed CEO of Globalstar, effective immediately. Dr. Jacobs has also been appointed to Globalstar’s Board of Directors. He succeeds David Kagan, who will retire as Globalstar’s CEO.

Dr. Jacobs is an accomplished leader and innovator who brings to Globalstar deep wireless industry experience and a track record of driving innovation-led growth, including growing Qualcomm’s revenues from $5.7 billion to $25.7 billion as CEO from 2005 to 2014 while adding approximately $50 billion to its market capitalization. As Globalstar’s CEO, he will drive the Company’s ongoing strategic initiatives to develop and deploy innovative solutions across terrestrial and satellite for customers around the world.

In conjunction with Dr. Jacobs’ appointment, Globalstar has also entered into a strategic perpetual licensing agreement for exclusive access to certain key XCOM technologies and personnel. The license covers a number of XCOM’s novel technologies for wireless spectrum innovations, including XCOMP, XCOM’s commercially available coordinated multipoint radio system. XCOMP delivers substantial capacity gains and other benefits in dense, complex, challenging wireless environments in sub 7 GHz spectrum. Globalstar also gains exclusive access to XCOM’s peer-to-peer connectivity technologies that could have applications across cellular and satellite devices.

Dr. Jacobs said, “I have devoted my career to advancing and commercializing innovation in wireless technology and am thrilled to continue this journey as CEO of Globalstar. The teams I’ve led have demonstrated the value creation that is possible by applying new technology to enhance capacity of underappreciated spectrum, and that is one of the many opportunities I see at Globalstar.”

Jacobs continued, “Bringing together Globalstar’s terrestrial spectrum and relationships with leading partners around the world with XCOM’s differentiated technology, which is well suited for high-performance applications, creates a significant opportunity to deliver for private network customers with mission-critical needs. At the same time, Globalstar’s continued innovations in satellite connectivity are just as exciting, particularly in small form-factor devices. Through the combination of Globalstar’s resources and XCOM’s technology, we can bring even more innovation to market. I look forward to working with the talented Globalstar team and its many commercial partners to advance growth across the Company’s four well-articulated strategic pillars and create long-term shareholder value.”

Globalstar Executive Chairman Jay Monroe said, “We have deep respect and familiarity developed from a close working relationship with the XCOM team over the last 20 years. Some of XCOM’s leaders contributed to the original Globalstar system while at Qualcomm, and we believe we will continue to break new ground with this team. Paul is a technology pioneer and proven leader who is well suited to drive Globalstar’s next phase of growth across our satellite and terrestrial assets and cement our position as a market disruptor. The engineering prowess extends throughout the XCOM organization, including to Matt Grob, Peter Black, Tamer Kadous and Daaman Hejmadi, amongst many others. Our partnerships with world-class customers, including our pioneering work in direct to device connectivity from our satellites, as well as our collaborations with Qualcomm, Nokia and others with Band n53, demonstrate the strength of Globalstar’s momentum and growing commercial solutions. We expect that Paul’s leadership, combined with this licensing agreement, will boost Globalstar’s ability to unlock the value of our global satellite and terrestrial assets and accelerate the introduction of new and innovative solutions for our customers, with the continued goal of driving long-term shareholder value.”

Monroe added, “I also want to thank David Kagan for leading Globalstar so capably since 2017, helping build the foundation for the Company’s future growth and supporting a seamless transition of his duties to Dr. Jacobs and the new team.”

Enhanced Executive Talent

In addition to Dr. Jacobs, XCOM senior executives Matt Grob, Chief Technology Officer, and Peter Black, Chief Scientist, have joined Globalstar. Also, Tamer Kadous, Vice President of Wireless, and Daaman Hejmadi, Vice President of Engineering, have accepted Globalstar’s offers of employment and are expected to join Globalstar after completing a transition period with XCOM. Collectively, these leading engineers are expected to help accelerate the Company’s ongoing commercialization work across both the satellite and terrestrial spectrum areas of the business, as well as develop capabilities and applications that leverage Globalstar’s assets in new ways.

Their deep expertise in developing cutting-edge wireless connectivity solutions complements Globalstar’s experienced team. Their efforts will be enhanced by dozens of XCOM employees, including engineering, test, product and R&D professionals who will remain with XCOM and continue to drive innovation.

Monroe continued, “The fact that we are attracting such visionary technologists to lead us going forward is a testament to the high caliber of Globalstar talent today, as well as the significant opportunity created by Globalstar’s differentiated assets.”

Additional Details

Under the terms of the perpetual licensing agreement, the consideration for an upfront licensing fee and related costs will be approximately 60 million shares of Globalstar common stock.

Employees of XCOM focused on the extended reality connectivity technology will not be impacted by this licensing agreement.

To facilitate the funding of XCOM’s ongoing operations, some of the shares issued as consideration for the licensing fee will be sold and delivered to certain long-term Globalstar and XCOM shareholders.

The transactions described in this release, including governance matters, reportable sale and purchase transactions, registration of shares and other related matters, will be reported in due course in various SEC filings, including on Forms 3, 4, 8-K and S-1.