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EchoStar Stock Jumps On Spectrum Sale To SpaceX. AST, Iridium Retreat. Globalstar Pops.
EchoStarEchoStar(US:SATS) Investors·2025-09-08 20:18

Core Insights - EchoStar's stock surged nearly 20% following the announcement of a $17 billion spectrum sale to SpaceX, which includes $8.5 billion in cash [1][3] - The deal allows SpaceX's Starlink to utilize the spectrum, while also providing EchoStar with funding for debt interest payments [4] - Other companies in the space-based cellular broadband sector, such as AST SpaceMobile and Iridium Communications, saw their stock prices decline due to the competitive implications of the EchoStar-SpaceX deal [2][3] Company Performance - EchoStar's stock has increased by 215% year-to-date, closing at $80.63 after the announcement [3] - AST SpaceMobile's shares fell by 3.9% to $40.77, while Iridium's stock dropped nearly 15% to $21.39 [3] - Globalstar's stock rose by 21.5% to close at $37.94, benefiting from the spectrum sale [3] Industry Dynamics - The competition among Starlink, AST, and Iridium is intensifying, particularly in providing satellite connectivity for smartphones [2] - Analysts suggest that T-Mobile may gain an advantage due to its existing agreement with Starlink, while AT&T and Verizon could be disadvantaged [5][6] - The potential for a satellite phone service from Musk's ventures raises questions about the future competitive landscape in the telecommunications industry [6] Financial Implications - The EchoStar-SpaceX deal includes SpaceX funding approximately $2 billion in cash interest payments on EchoStar's debt through November 2027 [4] - EchoStar's recent spectrum sales have improved its balance sheet, allowing it to hold onto remaining spectrum for potentially higher future valuations [9][10] - Despite a decline in satellite TV subscribers, EchoStar added 212,000 wireless subscribers, exceeding expectations [11]