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SpaceX to Acquire $17 Billion in Spectrum Assets from EchoStar

By  |  September 8, 2025

SpaceX, the aerospace company founded by Elon Musk, has reached an agreement to purchase wireless spectrum from EchoStar Corp. in a transaction valued at about $17 billion, according to Bloomberg. The deal gives SpaceX control of EchoStar’s AWS-4 and H-block spectrum licenses, which are crucial for both satellite and mobile communications.

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    Per Bloomberg, SpaceX will pay up to $8.5 billion in cash and another $8.5 billion in stock. In addition, the company will cover around $2 billion in cash interest payments on EchoStar’s debt through November 2027. Shares of EchoStar surged as much as 26% in New York trading following the announcement, while its bonds also rallied sharply.

    The agreement is expected to resolve a pending regulatory investigation into EchoStar by the Federal Communications Commission (FCC). Earlier this year, the agency accused the company of failing to make productive use of its spectrum and threatened to revoke valuable licenses. EchoStar said the probe had limited its ability to make strategic decisions about its 5G network. By selling off these assets, the company can pay down part of its $25 billion debt burden.

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    EchoStar had once been considered a potential fourth national wireless carrier, particularly after acquiring assets from T-Mobile during its merger with Sprint. However, the sale of spectrum to AT&T for $23 billion earlier this year and now to SpaceX marks a shift away from that vision. According to Bloomberg, the FCC said the combined deals with AT&T and SpaceX could enhance competition and broaden access to advanced wireless services across the United States.

    Related: Italy Negotiates $1.55 Billion Deal with SpaceX for Secure Telecommunications Services

    For SpaceX, the acquisition strengthens its push to build out direct-to-device satellite services. The company already has a partnership with T-Mobile, but ownership of EchoStar’s licenses would allow it to expand offerings more independently. EchoStar’s chief executive officer, Hamid Akhavan, said the move combines satellite spectrum with SpaceX’s launch and satellite capabilities to accelerate the rollout of direct-to-cell services.

    The news had ripple effects across the telecommunications sector. T-Mobile shares fell 4.1%, Verizon dropped 2.4%, and AT&T slipped 3.4% on the same day. Gwynne Shotwell, president and chief operating officer at SpaceX, said the transaction would help advance the company’s mission of eliminating mobile dead zones worldwide.

    Since its launch of Starlink in 2019, SpaceX has grown rapidly, attracting around 6 million customers in over 100 countries. It recently secured regulatory approval to begin operating in India, expanding its global reach. The acquisition of spectrum from EchoStar adds another key asset to fuel its long-term ambitions in both satellite internet and mobile connectivity.

    Source: Bloomberg