SpaceX to Acquire EchoStar Spectrum in $17B Deal to Power Next-Gen Starlink Direct to Cell
Elon Musk’s SpaceX has agreed to acquire EchoStar Corporation’s 50 MHz of exclusive U.S. S-band spectrum along with global Mobile Satellite Service (MSS) spectrum licenses in a transaction valued at approximately $17 billion. The deal includes up to $8.5 billion in cash and up to $8.5 billion in SpaceX stock, with SpaceX also committing to fund around $2 billion in cash interest payments on EchoStar debt through November 2027.
The spectrum will power next-generation Starlink Direct to Cell satellites, enabling higher bandwidth, optimized 5G protocols, and capacity levels 100 times greater than first-generation systems, according to SpaceX.
“This transaction with SpaceX continues our legacy of putting the customer first as it allows for the combination of AWS-4 and H-block spectrum from EchoStar with the rocket launch and satellite capabilities from SpaceX to realize the direct-to-cell vision in a more innovative, economical and faster way for consumers worldwide,” said Hamid Akhavan, president & CEO of EchoStar.
EchoStar stated proceeds will be used to retire debt and support ongoing operations and growth initiatives. Its existing businesses—DISH TV, Sling, and Hughes—will remain unaffected by the transaction.
The agreement builds on SpaceX’s January 2024 launch of Starlink satellites with Direct to Cell capabilities, aimed at eliminating mobile dead zones that still cover 20% of U.S. land area and 90% of the globe.
EchoStar was represented by White & Case LLP and Steptoe & Johnson PLLC, while SpaceX was represented by Gibson Dunn & Crutcher LLP and HWG LLP.
