EchoStar's Spectrum Deal with SpaceX Could Be Worth Billions
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Source: NASDAQ.COM
- Spectrum Deal Value: EchoStar's agreement to sell 65 megahertz of wireless spectrum to SpaceX is initially valued at approximately $17 billion, with amended terms potentially raising the total to $20 billion, including up to $11 billion in SpaceX stock, highlighting the deal's significance for EchoStar's future cash flow.
- IPO Potential: With SpaceX's expected valuation nearing $2 trillion, EchoStar's equity stake could be worth about $31 billion, despite its traditional pay-TV business facing a loss of 366,000 subscribers, this deal provides new growth opportunities for investors.
- Financial Improvement: Although EchoStar's pay-TV business faced challenges in Q1 of fiscal 2026, the company has reduced its net loss and improved operating income before depreciation and amortization year-over-year, indicating resilience during its transition.
- High-Risk Investment: EchoStar's future depends not only on its core business performance but also on the value of its SpaceX stock, cash from spectrum sales, and its ability to repay debt, making it a high-risk, high-reward way for investors to gain early exposure to SpaceX.
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Analyst Views on SATS
Wall Street analysts forecast SATS stock price to fall
5 Analyst Rating
3 Buy
2 Hold
0 Sell
Moderate Buy
Current: 131.070
Low
110.00
Averages
127.00
High
158.00
Current: 131.070
Low
110.00
Averages
127.00
High
158.00
About SATS
EchoStar Corporation is a holding company. The Company provides 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. The Company’s segments include Pay-TV, Wireless, Broadband and Satellite Services, and Other. Pay-TV segment offers services under the DISH brand and the SLING brand. Wireless segment offers nationwide wireless services to subscribers primarily under its Boost Mobile and Gen Mobile brands. Broadband and Satellite Services segment provides broadband network technologies, managed services, equipment, hardware, satellite services and communications solutions to government and enterprise customers. Other segment primarily consists of its legacy 5G Network and 5G Network deployment operations that are not utilized in the Wireless segment’s Hybrid MNO business.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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