Following the announcement of a $17 billion agreement to sell spectrum licenses to Elon Musk’s SpaceX, EchoStar’s stock shot up Monday.
After EchoStar Corp. secured a $17 billion deal to sell spectrum licenses to Elon Musk’s SpaceX, which is seeking to expand wireless coverage, the company’s stock shot up Monday.
Additionally, the two businesses are signing a long-term commercial deal that will allow SpaceX’s Starlink direct-to-cell service to be made available to EchoStar’s (SATS) Boost Mobile customers.
According to a note from Citi analyst Michael Rollins, Starlink will use the spectrum to have its own “standalone spectrum position” for a more reliable direct-to-cell service via EchoStar’s Boost.
In a statement, SpaceX chief operating officer Gwynne Shotwell said, “We’re so happy to be doing this transaction with EchoStar as it will advance our mission to end mobile dead zones around the world.”
Up to $8.5 billion in cash and up to $8.5 billion in SpaceX shares are involved in the agreement for EchoStar’s AWS-4 and H-block spectrum licenses. Additionally, SpaceX will pay almost $2 billion in cash interest on EchoStar’s debt through November 2027 as part of the arrangement.
According to EchoStar, among other things, the money will be used to pay off some debt.
Following two consecutive sessions at record highs, the stock closed Monday’s session up 19.9% to set yet another record high close.
The SpaceX announcement follows a significant agreement with AT&T Inc. (T) that was made public on August 26. In that agreement, EchoStar agreed to sell the telecom behemoth 3.45 GHz and 600 MHz spectrum licenses to AT&T for almost $23 billion. The business stated at the time that the money raised will be used to assist in debt repayment on Monday. The stock had surged 70.3% as a result of the deal, the largest one-day gain in 17 years.
EchoStar also stated in its statement on Monday that it will resolve its continuing conflict with the Federal Communications Commission through its spectrum sales. “EchoStar anticipates this transaction with SpaceX along with the previously announced spectrum sale will resolve the Federal Communications Commission’s (FCC) inquiries,” it stated.
Regarding its wireless spectrum, EchoStar and the FCC have been embroiled in a dispute. The FCC declared in May that EchoStar’s spectrum and cellular licenses would be reviewed.
EchoStar claimed in a late May filing with the Securities and Exchange Commission that the FCC’s public notices had a materially negative impact on the business “by creating uncertainty over its spectrum rights and effectively freezing its ability to make decisions regarding its 5G network buildout.”
EchoStar shares are up around 252.1% in 2025, surpassing the S&P 500 index’s SPX gain of over 10%, after a record monthly gain of 89.6% in August.
The increase is not limited to EchoStar’s stock price. The accompanying graphic from data-solutions provider BondCliQ illustrates the sharp increase in price performance of EchoStar’s 3.875% convertible bond, which matures in 2030, since the announcement of the AT&T transaction on August 26.
Performance of EchoStar 3.875% convertible bonds issued in 2030 so far
