Core Viewpoint - EchoStar Corp. is selling wireless spectrum licenses to SpaceX for approximately $2.6 billion, exchanging them for stock in SpaceX, which operates the Starlink satellite internet network [1]. Group 1: Deal Details - The new agreement is an extension of a previous $17 billion deal made in September, pending regulatory approval [2]. - The AWS-3 licenses involved in the transaction cover airwaves across the U.S. for mobile and satellite communications [2]. Group 2: Company Background - EchoStar has been divesting spectrum licenses following a U.S. government investigation into its potential hoarding of public-use licenses [3]. - The company previously agreed to sell spectrum to AT&T for $23 billion in August, and the FCC has since terminated its investigation into EchoStar's spectrum usage after these sales [3]. Group 3: Financial Performance - In its third-quarter results, EchoStar reported revenues of $3.61 billion, which fell short of analysts' expectations of $3.75 billion [4]. - The company reported a loss per share of $44.37, including a one-time, non-cash loss of $16.48 billion due to the dismantling of unused parts of its 5G network [4]. Group 4: Stock Performance - EchoStar's shares rose by 1.3% to $73.25 in pre-market trading, despite a 4% decline in the previous session [5]. - Year-to-date, the stock has more than tripled in value, although it shows strong momentum with bullish trends, the fundamentals suggest limited support for the rally [5].

SpaceX, the Elon Musk-backed company that owns the Starlink satellite internet network, agreed to acquire EchoStar’s unpaired AWS-3 licenses for $2.6 billion in stock https://t.co/UOMQKQstAU ...