"As with its previous spectrum license deal with AT&T, EchoStar's spectrum license deal with SpaceX will primarily see the company getting boatloads of cash. SpaceX is offering EchoStar a total compensation of $17 billion for its spectrum licenses. Of that, $8.5 billion will be in cash and another $8.5 billion will be in SpaceX shares, which are currently only available privately."
"But EchoStar isn't just getting cash and SpaceX stock. The definitive agreement will also see SpaceX fund around $2 billion in cash interest payments to EchoStar. The two companies will also enter into a commercial agreement that will allow EchoStar's Boost Mobile subscribers to access SpaceX's Starlink Direct to Cell service. EchoStar is the parent company of Boost Mobile, as well as Sling TV and the Dish Network satellite TV service."
Shares of EchoStar jumped after a prior $23 billion plan to sell wireless spectrum licenses to AT&T caused an 80% premarket surge on August 26. EchoStar has entered a definitive agreement to sell its AWS-4 and H-block spectrum licenses to SpaceX for about $17 billion. The compensation breaks down to $8.5 billion in cash and $8.5 billion in privately held SpaceX shares, with SpaceX also funding roughly $2 billion in cash interest payments. The deal includes a commercial agreement enabling Boost Mobile subscribers to access Starlink Direct to Cell service. Spectrum licenses grant rights to operate on specific radio waves and can be sold.
Read at Fast Company
Unable to calculate read time
Collection
[
|
...
]