TLDR
- EchoStar agreed to sell wireless spectrum licenses to SpaceX for $17 billion to resolve FCC regulatory concerns
- The deal includes up to $8.5 billion cash and $8.5 billion in SpaceX stock, plus $2 billion in debt interest payments
- EchoStar stock jumped over 22% in premarket trading after the announcement
- The transaction follows EchoStar’s previous $23 billion spectrum sale to AT&T in August
- Boost Mobile subscribers will gain access to SpaceX’s Starlink direct-to-cell service through a commercial agreement
EchoStar found itself in hot water with federal regulators. The Federal Communications Commission had questioned whether the company was properly using its wireless spectrum licenses for 5G deployment.
The regulatory pressure created real problems for EchoStar’s business. The company said the FCC review was hurting its operations and threatening its future as a wireless provider.
Things got so tight that EchoStar missed about $500 million in interest payments. The company needed a solution fast.
Enter SpaceX with a $17 billion lifeline. The deal covers EchoStar’s AWS-4 and H-block spectrum licenses that SpaceX wants for its Starlink satellite network.
EchoStar sells spectrum to SpaceX, cancels MDA satellite contract https://t.co/Cm0aKCfqAT pic.twitter.com/Vb7SVDRnP0
— SpaceNews (@SpaceNews_Inc) September 8, 2025
The payment structure spreads the risk for both companies. SpaceX will pay up to $8.5 billion in cash and another $8.5 billion in company stock.
SpaceX sweetened the deal even more. The company agreed to cover roughly $2 billion in interest payments on EchoStar’s debt through late 2027.
Market Response and Previous Deals
Wall Street loved the news. EchoStar shares rocketed over 22% in premarket trading on Monday morning.
This isn’t EchoStar’s first spectrum sale this year. The company sold other wireless spectrum licenses to AT&T for $23 billion in August.
That AT&T deal was EchoStar’s opening move to address the FCC’s concerns. The company hoped it would show regulators they were serious about compliance.
President Trump had pushed both EchoStar and FCC Chair Brendan Carr to find a solution. The political pressure added urgency to resolve the spectrum dispute.
Commercial Benefits and Future Plans
The SpaceX deal brings more than just cash. Both companies signed a commercial agreement that benefits their customers.
EchoStar’s Boost Mobile subscribers will get access to SpaceX’s next-generation Starlink Direct to Cell service. This gives Boost customers better coverage in remote areas.
For SpaceX, the spectrum licenses expand Starlink’s capabilities. The additional bandwidth helps the satellite network handle more users and faster speeds.
EchoStar plans to use the sale proceeds to pay down its heavy debt load. The company stressed that current operations at Dish TV, Sling, and Hughes won’t be affected.
The FCC had warned about revoking EchoStar’s spectrum licenses if the company couldn’t prove proper usage. Those “scarce spectrum resources” needed to serve the public interest.
EchoStar believes both the AT&T and SpaceX deals will satisfy the FCC’s requirements. The company expects these transactions to resolve the regulatory investigation.
The spectrum licenses SpaceX is buying will boost its satellite internet service. Starlink has grown rapidly but needs more bandwidth to serve millions of users worldwide.
SpaceX valued the deal at its private market price of $239.17 per share as of September 5, 2025.
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