The deal values the assets at a 73% discount to EchoStar’s reported $9.8 billion book value.
EchoStar (SATS) announced on Thursday that it has sold its nationwide AWS-3 spectrum licenses to SpaceX for $2.6 billion in stock, marking a steep 73% discount to the $9.8 billion book value the company reportedly assigned the assets.
This marks the continuing liquidation of wireless holdings that the telecom company has spent over a decade acquiring.
EchoStar Deepens Spectrum Selloff
EchoStar faced mounting FCC pressure over compliance with buildout requirements and a looming June 2026 re-auction that could have triggered shortfall payments if bids fell below $3.3 billion. By selling now at a significant discount, EchoStar avoids that regulatory risk while deepening ties with SpaceX’s direct-to-cell Starlink service.
The deal builds on a September pact with SpaceX and values the unpaired AWS-3 licenses in the 1695-1710 MHz band at a fraction of what EchoStar paid to acquire them in FCC auctions. Bloomberg reported in late September that EchoStar was also exploring a sale to Verizon (VZ), though those talks appear not to have materialized into a formal transaction.
EchoStar is taking payment entirely in SpaceX equity rather than cash, indicating that it is betting on appreciation in Elon Musk’s private space venture. The move extends a fire sale that has already generated $23 billion from spectrum sales to AT&T (T).
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