"EchoStar ( NASDAQ:SATS ) is on a rocket ride today with shares soaring 17% higher in morning trading after announcing a $17 billion deal to sell a portion of its spectrum licenses to SpaceX. This follows a similar blockbuster $23 billion spectrum sale to AT&T ( ) just two weeks ago - fueling a staggering 163% stock surge in 14 days."
"EchoStar is the parent of Dish Network, Sling TV, and Boost Mobile.It faced stormy skies earlier this year after the Federal Communications Commission (FCC) launched an investigation questioning whether EchoStar was meeting its 5G deployment obligations. Critics, including SpaceX's Elon Musk, accused the company of "warehousing" valuable spectrum, leaving it underused while competitors like Musk's Starlink clamored for access. The scrutiny threatened to revoke EchoStar's licenses, and financial strain mounted as the company missed $500 million in interest payments, raising bankruptcy fears."
"In late August, EchoStar inked a game-changing $23 billion deal to sell 50 MHz of nationwide low- and mid-band spectrum to AT&T. This all-cash transaction, covering 3.45 GHz and 600 MHz bands, not only bolstered AT&T's 5G network but also provided EchoStar with a financial lifeline. The deal - expected to close by mid-2026 - allows EchoStar's Boost Mobile to operate as a hybrid mobile network operator,"
EchoStar completed two major spectrum sales — $23 billion to AT&T and $17 billion to SpaceX — that drove a 163% stock surge over 14 days and an additional 17% jump in morning trading. The transactions provided substantial cash, materially reduced debt, and alleviated FCC concerns about 5G deployment and alleged spectrum warehousing. Prior financial stress included missed $500 million interest payments and potential license revocation. The AT&T deal covers 3.45 GHz and 600 MHz bands, permits Boost Mobile to operate using AT&T and T-Mobile networks, is expected to close by mid-2026, and strengthens EchoStar's balance sheet.
Read at 24/7 Wall St.
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