COVINGTON, La. — Covington-based satellite operator Globalstar, one of the area’s few publicly traded companies, has named Paul Jacobs as its CEO. The former Qualcomm boss and Silicon Valley hot shot will replace David Kagan, who is retiring after about five years in Globalstar’s top job.
Financial news outlets reported that the news of Jacobs’ hiring sparked a near 20% surge in Globalstar’s shares on the NASDAQ market.
“This a big deal,” said Tulane business professor Peter Ricchiuti. “You wouldn’t get this caliber of executive if they didn’t believe in the outlook for Globalstar. … That being said, there remain a lot of unknowns. Potential investors should recognize this is a speculative stock and certainly not for the faint of heart.”
Related to the hiring, Globalstar signed a multimillion dollar deal with XCOM Labs for access to technologies and personnel. Jacobs co-founded and recently led the wireless tech startup.
Jacobs is credited with transforming Qualcomm into one of the major suppliers of chips for the global smartphone industry. He was CEO for roughly a decade beginning in 2005.
Meanwhile, in 2022, Globalstar partnered with Apple to provide a service that allows the iPhone 14 to send distress signals from areas without cellular network. Apple pledged $450 million in total to the development of its emergency SOS infrastructure.
“The contract with Apple put Globalstar on the map for investors,” said Ricchiuti. “[The Paul Jacobs hiring] makes the long-term potential for the company even stronger.”
