Echostar To Sell $17B In Spectrum Assets To Spacex Stock Rockets 40% Pre-Market

EchoStar Corp. (SATS) on Monday announced a definitive agreement to divest a major portion of its wireless spectrum assets to Elon Musk's SpaceX in a strategic transaction valued at approximately $17 billion. 

The deal includes up to $8.5 billion in cash and a matching amount in SpaceX equity, priced at the time the agreement was finalized. Following the news, EchoStar stock traded over 39% higher in Monday's premarket. 

The agreement also commits SpaceX to cover around $2 billion in interest payments due on EchoStar's outstanding debt through November 2027. Boost Mobile users, operated under EchoStar's 5G platform, will soon be able to access SpaceX's next-generation Starlink Direct to Cell technology through a newly formed commercial partnership between the two companies.

"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,” said President and CEO of EchoStar, Hamid Akhavan. 

EchoStar views the transaction as a potential resolution to ongoing inquiries from the Federal Communications Commission (FCC), which had been investigating aspects of the company's spectrum holdings. Additionally, the company expects the cash proceeds to support both debt reduction efforts and growth plans.

“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,” said President and COO, SpaceX, Gwynne Shotwell. 

On Stocktwits, retail sentiment around EchoStar remained in 'bearish' territory amid 'low' message volume levels. EchoStar stock has gained over 193% in 2025 and over 210% in the past 12 months. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

MENAFN08092025007385015968ID1110030976