In a blockbuster move that could reshape global communications, EchoStar announced Monday it will sell key spectrum licenses to Elon Musk’s SpaceX in a cash-and-stock deal valued at $17 billion. The transaction, stitched together by four powerhouse law firms, follows EchoStar’s $23 billion sale of wireless spectrum to AT&T just weeks ago.
Under the deal, SpaceX will acquire AWS-4 and H-block spectrum licenses from EchoStar for up to $8.5 billion in cash and $8.5 billion in stock. The agreement also requires SpaceX to cover roughly $2 billion in cash interest payments on EchoStar’s debt through 2027.
Legal Muscle Behind the Deal
EchoStar turned to White & Case LLP and Steptoe LLP for guidance, while SpaceX was represented by Gibson Dunn & Crutcher LLP and HWG LLP.
Vision for Direct-to-Cell
EchoStar CEO Hamid Akhavan framed the deal as the next step in a decade-long push toward direct-to-cell connectivity. “For years, we’ve acquired spectrum with the foresight that satellite-to-cell will change how the world communicates,” Akhavan said. “This deal fuses EchoStar’s spectrum with SpaceX’s rockets and satellites to accelerate that vision.”
The partnership will also allow Boost Mobile subscribers to tap into Starlink Direct to Cell, expanding service to places that were once unreachable.
