EchoStar Shares Surge 61% on Spectrum Sale and Strategic Alliance with SpaceX

TradingKey - EchoStar Corporation (SATS.US) soared 61% to $108 in pre-market trading on Monday, following the announcement of a major transaction worth approximately $17 billion with SpaceX, the company led by Elon Musk. As of this report, the stock was still up over 22%.

Under the agreement, EchoStar will sell a portion of its wireless spectrum licenses to SpaceX. The deal consists of $8.5 billion in cash and $8.5 billion in SpaceX stock. Additionally, SpaceX will cover the interest payments on approximately $2 billion of EchoStar’s debt.

The transaction goes beyond a simple asset sale, encompassing a strategic partnership. Users of Boost Mobile, a subsidiary of EchoStar, will gain access to SpaceX’s Starlink satellite network, enabling cellular-direct-to-satellite service. This marks a deep integration between the two companies in the field of satellite communications.

Market analysts view the deal as a critical step in resolving regulatory risks. Earlier this year, the Federal Communications Commission (FCC) opened an investigation into EchoStar following a complaint from SpaceX, which alleged that EchoStar was not fully utilizing its spectrum holdings. EchoStar stated that this sale will “resolve the FCC’s inquiry,” clearing a major regulatory hurdle.

This move follows closely on the heels of EchoStar’s $23 billion spectrum sale to AT&T last month, signaling the company’s accelerated strategy of asset divestiture and strategic realignment.

By aligning with SpaceX, EchoStar not only secures substantial capital and equity value but also gains deep access to the world’s leading satellite internet technology — laying the foundation for its positioning in the 6G and satellite communications era.