SpaceX acquires $17 billion in wireless spectrum licenses from EchoStar to enhance its Starlink satellite network and provide direct-to-cell services. The deal includes $8.5 billion in cash, $8.5 billion in stock, and covering $2 billion in EchoStar debt interest payments by 2027. EchoStar’s Boost Mobile customers will access Starlink coverage in underserved areas. EchoStar shares surged 22% in premarket trading, while U.S. carriers AT&T, T-Mobile, and Verizon fell 4-5% due to competitive concerns. EchoStar will maintain its Dish TV, Sling streaming, Hughes internet, and Boost Mobile businesses. FCC scrutiny of EchoStar’s spectrum use led to the deal after a $23 billion spectrum sale to AT&T.

Relevant Companies:
SATS – Surged on news of $17 billion spectrum sale to SpaceX.
T – Shares fell as SpaceX expands into direct-to-cell services.
TMUS – Declined on competitive pressure from Starlink expansion.

Read more at Quiver Quant: SpaceX to Buy EchoStar Spectrum for $17B, Powering Starlink Direct-to-Cell Expansion