AT&T agreed to buy wireless spectrum licenses from EchoStar for $23 billion, covering over 400 U.S. markets. FCC pressure led to the deal after investigating EchoStar’s compliance with 5G network requirements. EchoStar plans to use the proceeds to retire debt and fund growth initiatives.

Shares of EchoStar surged 76% in premarket trading, closing with a market value of $8.6 billion. AT&T shares rose less than 1%. The deal is expected to close in mid-2026, with AT&T becoming EchoStar’s primary network-services partner and having the option to lease the purchased spectrum.

EchoStar was considering a chapter 11 bankruptcy filing to protect its wireless spectrum licenses from FCC revocation. The company’s assets are primarily wireless-spectrum rights. AT&T stated the licenses will strengthen its spectrum holdings and allow for rapid deployment to U.S. consumers. Boost, a small carrier owned by EchoStar, ended June with about 7 million subscribers.

Read more at Yahoo Finance: AT&T to Buy Spectrum Licenses from EchoStar for $23 Billion