SpaceX Strikes $17 Billion Spectrum Deal with EchoStar
SpaceX collaborates with EchoStar in a $17 billion deal, acquiring spectrum licenses to enhance its Starlink satellite network. The agreement comprises up to $8.5 billion in cash and stock, with commercial collaboration enabling Boost Mobile customers to access Starlink services. EchoStar plans to use the proceeds for debt reduction.
- Country:
- United States
SpaceX has successfully passed a monumental milestone by securing a $17 billion deal with EchoStar. The agreement enables SpaceX to acquire spectrum licenses, crucial for bolstering its Starlink satellite network capabilities.
In this transaction, SpaceX will invest up to $8.5 billion both in cash and stock, while arranging approximately $2 billion in cash interest payments on EchoStar's debt through 2027. This strategic partnership will also extend to a long-term commercial agreement allowing EchoStar's Boost Mobile customers to leverage SpaceX's innovative Starlink Direct to Cell service.
EchoStar anticipates that both this deal and an impending $23 billion acquisition by AT&T will address Federal Communications Commission's queries regarding 5G technology implementation across the United States. EchoStar plans to use part of the deal's proceeds to alleviate its debt without affecting operations of subsidiaries like Dish TV, Sling, and Hughes.
(With inputs from agencies.)
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