SpaceX Agrees to Buy EchoStar Spectrum for $17 Billion

SpaceX, the company that owns the Starlink satellite network, agreed to acquire wireless spectrum from EchoStar for about $17 billion in cash and stock. SpaceX is buying EchoStar’s AWS-4 and H-block spectrum licenses, and will pay as much as $8.5 billion in cash and up to $8.5 billion in SpaceX stock. EchoStar will use proceeds from the deal to retire some of its debt, as well as fund its continued operations and growth initiatives. SpaceX has also agreed to fund a total of about $2 billion in cash interest payments on EchoStar debt through November 2027. Satellite operators like SpaceX seeking to provide direct-to-device mobile service from space usually need to team up with at least one mobile company that holds ground-based mobile licenses. SpaceX currently has a partnership with T-Mobile, but this spectrum acquisition would allow it to offer its own direct-to-device offerings more independently. The latest transaction, together with a recent spectrum sale to AT&T Inc., is expected to resolve inquiries from the US Federal Communications Commission.