EchoStar Stock Soars on $17 Billion Spectrum Sale to SpaceX

ENGLEWOOD, Colo., Sept. 8, 2025 - EchoStar Corp. shares jumped nearly 22% in premarket trading Monday after the satellite and wireless provider agreed to sell its AWS-4 and H-block spectrum licenses to SpaceX for about $17 billion.

Deal Unlocks Major Cash, Equity and Partnership The agreement calls for SpaceX to pay up to $8.5 billion in cash and up to $8.5 billion in SpaceX stock for EchoStar’s spectrum holdings. SpaceX will also fund approximately $2 billion in cash interest payments on EchoStar debt through November 2027. In addition, the two companies will enter a long-term commercial partnership allowing EchoStar’s Boost Mobile subscribers to access Starlink’s Direct-to-Cell satellite service.

A Timely Resolution to FCC Scrutiny This transaction follows a federal inquiry into EchoStar’s use of its spectrum assets. Company executives expect that together with a prior $23 billion sale to AT&T, the SpaceX deal will satisfy FCC concerns over under-utilized licenses and help retire outstanding debt.

Broader Market Impact

• EchoStar’s stock surged to an all-time intraday high, propelling its year-to-date gain to nearly 200%.
• U.S. wireless peers AT&T, T-Mobile and Verizon saw their shares decline more than 4% on the news, reflecting competitive pressure on low- and mid-band spectrum markets.

Looking Ahead With proceeds earmarked for debt reduction and growth initiatives, EchoStar aims to stabilize its balance sheet and enhance shareholder value. Meanwhile, SpaceX gains critical licensed spectrum to expand its Starlink network into underserved mobile markets.