Core Viewpoint - EchoStar Communications (SATS.US) has agreed to sell its spectrum licenses to AT&T (T.US) for approximately $23 billion, which will help the company avoid bankruptcy and address regulatory issues regarding its radio wave usage [1][2]. Group 1: Transaction Details - The transaction will provide AT&T with an additional 50 MHz of low and mid-band spectrum, enhancing its network capabilities [1]. - The deal is expected to be completed by mid-2026, pending regulatory approval [1]. - The sale price is $9 billion higher than what EchoStar paid for the spectrum and $5 billion above the valuation used for asset securitization [2]. Group 2: Regulatory Context - The Federal Communications Commission (FCC) has been urging EchoStar to sell part of its wireless spectrum due to concerns about underutilization [2]. - The FCC initiated an investigation in May to determine if EchoStar fulfilled its obligations regarding its wireless and satellite spectrum rights [2]. Group 3: Market Reaction - Following the announcement, EchoStar's stock surged by up to 85%, closing with a 70% increase, while AT&T's stock remained relatively stable [1]. - Bond prices within the EchoStar system rose significantly, with Dish DBS bonds maturing in 2029 increasing by up to 12 cents to 83 cents [1]. Group 4: Future Plans and Financing - AT&T plans to finance the EchoStar transaction through its own funds and borrowing, maintaining its forecast to raise up to $20 billion through stock buybacks by 2027 [4]. - The company is also expanding its fiber network and previously agreed to acquire Lumen Technologies' consumer fiber business for $5.75 billion [4]. Group 5: Company Financials - EchoStar has $5 billion in cash on its balance sheet and has committed to resuming bond payments, including overdue interest [5]. - Despite potential bankruptcy threats, creditors do not anticipate significant losses, which may facilitate a quicker resolution through federal court intervention [5].