EchoStar has entered into a definitive agreement with SpaceX to sell its AWS-4 and H-block spectrum licenses in a transaction valued at approximately $17 billion. The deal includes up to $8.5 billion in cash and up to $8.5 billion in SpaceX stock, based on the valuation at the time the agreement was signed. In addition to the spectrum sale, SpaceX will fund roughly $2 billion in cash interest payments on EchoStar’s outstanding debt through November 2027, providing further financial flexibility.
As part of the transaction, EchoStar and SpaceX will establish a long-term commercial partnership that will integrate EchoStar’s Boost Mobile subscribers into SpaceX’s next-generation Starlink Direct to Cell service. This collaboration leverages EchoStar’s cloud-native 5G core and SpaceX’s satellite connectivity to deliver expanded mobile coverage and enhanced service capabilities, particularly in underserved and remote areas.
EchoStar expects this deal, along with a previously announced spectrum sale, to resolve ongoing inquiries from the Federal Communications Commission. The agreement is subject to regulatory approvals and customary closing conditions, with completion anticipated once those requirements are met.
The proceeds from the sale will be directed toward retiring portions of EchoStar’s debt and supporting its ongoing operations and strategic growth initiatives. Importantly, the company’s existing services—including DISH TV, Sling, and Hughes—will remain unaffected by the transaction, ensuring continuity for customers and partners.
Support/counsel: EchoStar was represented by White & Case and Steptoe & Johnson for this deal. SpaceX was represented by Gibson Dunn & Crutcher and HWG.
KEY QUOTES:
“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. 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.”
Hamid Akhavan, president & CEO, EchoStar
“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. 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.”
Gwynne Shotwell, president & COO, SpaceX
