EchoStar Agrees to Sell $17B Spectrum to SpaceX

EchoStar Corp. has agreed to sell its AWS-4 and H-block wireless spectrum licenses to SpaceX for approximately $17 billion, consisting of up to $8.5 billion in cash and an equal amount in SpaceX stock. This strategic deal will enable a long-term partnership allowing EchoStar's Boost Mobile subscribers to access SpaceX's next-generation Starlink Direct to Cell service through a cloud-native 5G core. The transaction is expected to address Federal Communications Commission concerns about EchoStar's use of its spectrum licenses, following complaints from SpaceX that EchoStar was underutilizing the spectrum. EchoStar's CEO emphasized the company's commitment to advancing direct-to-cell connectivity by combining its spectrum assets with SpaceX's satellite capabilities to innovate global communications. SpaceX's President Gwynne Shotwell highlighted that the deal supports their mission to eliminate mobile dead zones worldwide using Starlink satellites. EchoStar's shares surged significantly in premarket trading following the announcement, reflecting investor optimism about the deal's potential.