EchoStar To Sell Spectrum Licenses To SpaceX For $17 Bln
(RTTNews) - EchoStar Corp. (SATS), a provider of satellite and terrestrial communications technologies and services, on Monday announced it has entered into a definitive agreement with aerospace manufacturer and space transport services company, SpaceX, to sell its AWS-4 and H-block spectrum licenses for about $17 billion.
The deal is expected to close after regulatory approvals and other conditions are met.
The consideration includes up to $8.5 billion in cash and up to $8.5 billion in SpaceX stock, valued as of the agreement date.
Additionally, SpaceX has agreed to fund approximately $2 billion of cash interest payments on EchoStar debt through November 2027.
As part of the transaction, SpaceX and EchoStar will also enter into a long-term commercial agreement that will allow EchoStar's Boost Mobile subscribers, through its cloud-native 5G core, to access SpaceX's next-generation Starlink Direct-to-Cell service.
Proceeds from the deal will be used to retire debt and support the company's operations and growth initiatives. The company said the transaction will not affect DISH TV, Sling, or Hughes operations.
In the pre-market, EchoStar is 28.91% higher at $86.68 on the Nasdaq.
