TLDR
- AT&T agreed to buy EchoStar spectrum licenses for $23 billion to expand 5G network coverage
- EchoStar stock surged 77% premarket while AT&T gained 0.9% following the announcement
- Deal includes spectrum rights across 400+ US markets, strengthening AT&T’s network capacity
- EchoStar will become hybrid mobile operator running Boost Mobile under AT&T partnership
- Transaction expected to close mid-2026 pending regulatory approval
AT&T announced Tuesday a blockbuster $23 billion deal to acquire wireless spectrum licenses from EchoStar. The massive transaction sent EchoStar shares soaring 77% to $52.94 in premarket trading.
$ASTS: AT&T is acquiring Echostar’s 600MHZ and 3.45GHZ spectrum (50MHZ total) for $23B.
This frees up more spectrum for AST SpaceMobile to use with AT&T. Also highlights the value of 45MHZ of L-band Ligado spectrum.
Echostar could be looking to sell/lease its AWS3 and AWS4… pic.twitter.com/Erp5bz3KNf
— Anp🅰️nman (@spacanpanman) August 26, 2025
AT&T stock climbed 0.9% to $29.01 as investors welcomed the network expansion move. The telecom giant will gain spectrum rights covering more than 400 markets nationwide.
The deal strengthens AT&T’s low-band and mid-band spectrum portfolio. These frequencies are crucial for delivering fast 5G service to customers across urban and rural areas.
Strategic Network Partnership
EchoStar will transition into a hybrid mobile network operator under the expanded agreement. The satellite company will provide wireless services through its Boost Mobile brand.
AT&T becomes EchoStar’s primary network partner in this arrangement. This partnership extends the relationship beyond just the spectrum purchase.
The companies structured the deal to benefit both parties. EchoStar gets a massive cash infusion while maintaining its mobile operations through the Boost brand.
Financing and Timeline Details
AT&T plans to fund the purchase using existing cash reserves and new borrowings. The company maintained its 2025 financial guidance despite the large investment.
Management expects adjusted earnings between $1.97 and $2.07 per share this year. The $20 billion share buyback program for 2025-2027 remains on track.
The transaction requires regulatory approval before completion. Both companies expect the deal to close by mid-2026.
Recent Acquisition Activity
This marks AT&T’s second major acquisition in recent months. The company agreed to buy Lumen Technologies’ fiber operations for $5.75 billion in May.
These deals reflect AT&T’s strategy to dominate next-generation connectivity. The spectrum purchase particularly targets 5G network leadership as competition intensifies.
Wireless spectrum has become increasingly valuable as data usage explodes. The licenses give AT&T exclusive rights to specific radio frequencies in designated markets.
The $23 billion price tag reflects current market conditions for premium spectrum assets. Industry experts view these frequencies as essential infrastructure for future growth.
AT&T said the acquisition supports “long-term leadership in advanced connectivity across 5G and fiber.” The company expects the additional spectrum to enhance service quality and network capacity across its coverage area.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
