EchoStar Announces Spectrum Sale and Commercial Agreement with SpaceX
EchoStar (NASDAQ:SATS) has announced a significant deal with SpaceX, agreeing to sell its AWS-4 and H-block spectrum licenses for $17 billion. The transaction includes up to $8.5 billion in cash and $8.5 billion in SpaceX stock. Additionally, SpaceX will fund approximately $2 billion in cash interest payments on EchoStar's debt through November 2027.
The deal includes a long-term commercial agreement enabling EchoStar's Boost Mobile subscribers to access SpaceX's next-generation Starlink Direct-to-Cell service. SpaceX will utilize the acquired spectrum to develop and deploy an enhanced Starlink Direct-To-Cell constellation, aiming to eliminate mobile dead zones globally.
The transaction proceeds will be used for debt retirement and funding EchoStar's operations and growth initiatives. Current operations of DISH TV, Sling, and Hughes will remain unaffected. The deal's closing is subject to regulatory approvals and other conditions.
EchoStar (NASDAQ:SATS) ha annunciato un accordo importante con SpaceX per la vendita delle sue licenze di spettro AWS-4 e H-block per un totale di 17 miliardi di dollari. L'operazione prevede fino a 8,5 miliardi di dollari in contanti e 8,5 miliardi di dollari in azioni SpaceX. Inoltre, SpaceX finanzierà circa 2 miliardi di dollari di pagamenti di interessi in contanti sul debito di EchoStar fino a novembre 2027.
Il contratto comprende un accordo commerciale a lungo termine che permetterà agli abbonati Boost Mobile di EchoStar di accedere al servizio Starlink Direct-to-Cell di nuova generazione di SpaceX. SpaceX impiegherà lo spettro acquisito per sviluppare e lanciare una costellazione Starlink Direct-To-Cell potenziata, con l'obiettivo di eliminare le zone morte mobili a livello globale.
I proventi della transazione saranno utilizzati per estinguere debiti e finanziare le attività operative e le iniziative di crescita di EchoStar. Le attività correnti di DISH TV, Sling e Hughes non saranno interessate. La chiusura dell'operazione è soggetta alle approvazioni regolamentari e ad altre condizioni.
EchoStar (NASDAQ:SATS) ha anunciado un acuerdo significativo con SpaceX para vender sus licencias de espectro AWS-4 y H-block por 17.000 millones de dólares. La transacción incluye hasta 8.500 millones de dólares en efectivo y 8.500 millones de dólares en acciones de SpaceX. Además, SpaceX financiará aproximadamente 2.000 millones de dólares en pagos de intereses en efectivo sobre la deuda de EchoStar hasta noviembre de 2027.
El acuerdo contempla un contrato comercial a largo plazo que permitirá a los suscriptores de Boost Mobile de EchoStar acceder al servicio Starlink Direct-to-Cell de próxima generación de SpaceX. SpaceX utilizará el espectro adquirido para desarrollar y desplegar una constelación mejorada de Starlink Direct-To-Cell, con la meta de eliminar las zonas sin cobertura móvil a nivel mundial.
Los ingresos de la transacción se destinarán al pago de deuda y al financiamiento de las operaciones y proyectos de crecimiento de EchoStar. Las operaciones actuales de DISH TV, Sling y Hughes no se verán afectadas. El cierre de la operación está sujeto a aprobaciones regulatorias y otras condiciones.
EchoStar (NASDAQ:SATS)는 SpaceX와 중요한 거래를 체결하고 AWS-4 및 H-block 스펙트럼 사용권을 170억 달러에 매각하기로 했습니다. 거래에는 최대 85억 달러 현금과 85억 달러 상당의 SpaceX 주식이 포함됩니다. 또한 SpaceX는 2027년 11월까지 EchoStar의 채무에 대한 약 20억 달러의 현금 이자 지급을 지원합니다.
이번 계약에는 장기 상업 협약이 포함되어 EchoStar의 Boost Mobile 가입자들이 SpaceX의 차세대 Starlink Direct-to-Cell 서비스를 이용할 수 있게 됩니다. SpaceX는 인수한 스펙트럼을 활용해 향상된 Starlink Direct-To-Cell 위성군을 개발·배치하여 전 세계 모바일 사각지대를 해소하는 것을 목표로 합니다.
거래 대금은 채무 상환과 EchoStar의 운영 및 성장 계획 자금으로 사용될 예정입니다. DISH TV, Sling 및 Hughes의 현재 운영에는 영향이 없습니다. 거래 종결은 규제 승인 및 기타 조건 충족을 전제로 합니다.
EchoStar (NASDAQ:SATS) a annoncé un accord majeur avec SpaceX, cédant ses licences de spectre AWS-4 et H-block pour 17 milliards de dollars. La transaction comprend jusqu'à 8,5 milliards de dollars en numéraire et 8,5 milliards de dollars en actions SpaceX. De plus, SpaceX financera environ 2 milliards de dollars de paiements d'intérêts en numéraire sur la dette d'EchoStar jusqu'en novembre 2027.
L'accord inclut un partenariat commercial à long terme permettant aux abonnés Boost Mobile d'EchoStar d'accéder au service Starlink Direct-to-Cell de nouvelle génération de SpaceX. SpaceX utilisera le spectre acquis pour développer et déployer une constellation Starlink Direct-To-Cell améliorée, visant à éliminer les zones blanches mobiles dans le monde.
Le produit de la transaction servira au remboursement de la dette et au financement des opérations et des projets de croissance d'EchoStar. Les activités actuelles de DISH TV, Sling et Hughes ne seront pas affectées. La clôture de l'opération est soumise aux approbations réglementaires et à d'autres conditions.
EchoStar (NASDAQ:SATS) hat eine bedeutende Vereinbarung mit SpaceX angekündigt und verkauft seine AWS-4- und H-Block-Spektrumlizenzen für 17 Milliarden US-Dollar. Die Transaktion umfasst bis zu 8,5 Milliarden US-Dollar in bar und 8,5 Milliarden US-Dollar in SpaceX-Aktien. Zudem wird SpaceX rund 2 Milliarden US-Dollar an Barzinszahlungen für EchoStars Schulden bis November 2027 finanzieren.
Die Vereinbarung enthält einen langfristigen kommerziellen Vertrag, der EchoStars Boost Mobile-Kunden Zugang zum neuen Starlink Direct-to-Cell-Dienst von SpaceX ermöglicht. SpaceX wird das erworbene Spektrum nutzen, um eine verbesserte Starlink Direct-To-Cell-Konstellation zu entwickeln und bereitzustellen, mit dem Ziel, mobile Funklöcher weltweit zu beseitigen.
Die Erlöse der Transaktion werden zur Schuldentilgung sowie zur Finanzierung von EchoStars Betrieb und Wachstumsinitiativen verwendet. Der laufende Betrieb von DISH TV, Sling und Hughes bleibt unberührt. Der Abschluss der Transaktion steht unter dem Vorbehalt behördlicher Genehmigungen und weiterer Bedingungen.
- Substantial deal value of $17 billion with balanced cash and stock components
- SpaceX to fund $2 billion in EchoStar's debt interest payments through 2027
- Strategic partnership providing Boost Mobile subscribers access to Starlink Direct-to-Cell service
- Resolution of pending FCC inquiries through spectrum sales
- No impact on current core operations of DISH TV, Sling, and Hughes
- Divestment of valuable spectrum assets may limit future strategic options
- Transaction subject to regulatory approval risks
- Significant dependence on SpaceX stock value for half of the deal consideration
Insights
EchoStar's $17B spectrum sale to SpaceX strengthens both companies' positions while addressing EchoStar's debt challenges and regulatory concerns.
This $17 billion spectrum deal represents a transformative transaction for both EchoStar and SpaceX with significant strategic implications. EchoStar is divesting its complete portfolio of AWS-4 and H-block spectrum licenses, receiving up to
The financial structure of this deal is particularly noteworthy given EchoStar's debt situation. The company is clearly leveraging these valuable spectrum assets to alleviate financial pressure, with proceeds earmarked for retiring debt obligations while supporting continued operations and growth initiatives. The
Beyond the financial aspects, this transaction creates a strategic partnership through a long-term commercial agreement allowing EchoStar's Boost Mobile subscribers to access SpaceX's next-generation Starlink Direct-to-Cell service. This arrangement enhances EchoStar's service offerings without requiring the capital expenditure of building its own satellite infrastructure.
For SpaceX, acquiring this exclusive spectrum significantly enhances its Starlink Direct-to-Cell capabilities. The AWS-4 and H-block frequencies will enable SpaceX to develop advanced satellites specifically designed for direct-to-cell communications, addressing the global challenge of mobile connectivity dead zones. This acquisition strengthens SpaceX's position in the emerging satellite-to-phone market, where it faces competition from AST SpaceMobile and other players.
The regulatory dimension is equally significant, as EchoStar explicitly states this transaction, combined with a previously announced spectrum sale, will resolve pending FCC inquiries. This suggests EchoStar is using these spectrum divestitures to address regulatory compliance issues, potentially removing a significant overhang for the company.
EchoStar to sell full portfolio of AWS-4 and H-block spectrum licenses to SpaceX.
With AWS-4 and H-block spectrum licenses, SpaceX to develop and deploy a next-generation Starlink Direct-To-Cell constellation.
In connection with the transaction, SpaceX and EchoStar will enter into a long-term commercial agreement, which will enable EchoStar's Boost Mobile subscribers – through its cloud-native 5G core – to access SpaceX's next generation Starlink Direct to Cell service.
"For the past decade, we've acquired spectrum and facilitated worldwide 5G spectrum standards and devices, all with the foresight that direct-to-cell connectivity via satellite would change the way the world communicates," said Hamid Akhavan, president & CEO, EchoStar. "This transaction with SpaceX continues our legacy of putting the customer first as it allows for the combination of AWS-4 and H-block spectrum from EchoStar with the rocket launch and satellite capabilities from SpaceX to realize the direct-to-cell vision in a more innovative, economical and faster way for consumers worldwide."
"We're so pleased to be doing this transaction with EchoStar as it will advance our mission to end mobile dead zones around the world," said Gwynne Shotwell, president & COO, SpaceX. "SpaceX's first generation Starlink satellites with Direct to Cell capabilities have already connected millions of people when they needed it most – during natural disasters so they could contact emergency responders and loved ones – or when they would have previously been off the grid. In this next chapter, with exclusive spectrum, SpaceX will develop next generation Starlink Direct to Cell satellites, which will have a step change in performance and enable us to enhance coverage for customers wherever they are in the world."
EchoStar anticipates this transaction with SpaceX along with the previously announced spectrum sale will resolve the Federal Communications Commission's (FCC) inquiries.
Closing of the proposed transaction will occur after all required regulatory approvals are received and other closing conditions are satisfied.
The proceeds of this transaction will be used for, among other things, retiring certain debt obligations and funding EchoStar's continued operations and growth initiatives. Current operations of EchoStar's DISH TV, Sling and Hughes will not be impacted by this transaction.
EchoStar was represented by White & Case LLP and Steptoe & Johnson PLLC for this transaction. SpaceX was represented by Gibson Dunn & Crutcher LLP and HWG LLP.
About EchoStar Corporation
EchoStar Corporation (Nasdaq: SATS) is a premier provider of technology, networking services, television entertainment and connectivity, offering consumer, enterprise, operator and government solutions worldwide under its EchoStar®, Boost Mobile®, Sling TV, DISH TV, Hughes®, HughesNet®, HughesON™, and JUPITER™ brands. In
©2025 EchoStar, Hughes, HughesNet, DISH and Boost Mobile are registered trademarks of one or more affiliate companies of EchoStar Corp.
About SpaceX
SpaceX designs, manufactures, and launches the world's most advanced rockets and spacecraft. The company was founded in 2002 to revolutionize space technology, with the ultimate goal of making life multiplanetary. As the world's leading provider of launch services, SpaceX is leveraging its deep experience with both spacecraft and on-orbit operations to deploy the world's most advanced internet and Direct to Cell networks. Engineered to end mobile dead zones around the world, Starlink's satellites with Direct to Cell capabilities enable ubiquitous access to texting, calling, and browsing wherever you may be on land, lakes, or coastal waters.
View original content to download multimedia:https://www.prnewswire.com/news-releases/echostar-announces-spectrum-sale-and-commercial-agreement-with-spacex-302548650.html
SOURCE EchoStar Corporation
FAQ
What is the value of EchoStar's spectrum sale to SpaceX?
How will the SpaceX-EchoStar deal affect Boost Mobile customers?
What will EchoStar do with the proceeds from the SpaceX spectrum sale?
Will the SpaceX-EchoStar deal affect DISH TV and Sling services?
How is SpaceX helping with EchoStar's debt?
When will the EchoStar-SpaceX spectrum sale be completed?
