Key facts
- EchoStar sold wireless spectrum to SpaceX for $17 billion in September 2025.
- The deal included $8.5 billion in cash and $8.5 billion in SpaceX equity.
- SpaceX purchased an additional $2.6 billion in spectrum from EchoStar in November 2025.
- EchoStar's stock price has risen significantly since the deals, becoming a proxy for SpaceX.
- EchoStar was reportedly preparing for Chapter 11 bankruptcy before the SpaceX deal.
EchoStar, a satellite company that was on the verge of bankruptcy, has seen a dramatic turnaround following its sale of wireless spectrum licenses to SpaceX. In September 2025, EchoStar sold spectrum to SpaceX for $17 billion, consisting of $8.5 billion in cash and $8.5 billion in SpaceX equity, representing roughly 2% to 3% of the company. SpaceX further acquired an additional $2.6 billion in spectrum from EchoStar in November 2025. These transactions have propelled EchoStar's stock price, making it a proxy for SpaceX ahead of its anticipated initial public offering (IPO) later this month. The company's stock price has soared 430% since the beginning of the previous year, including nearly 375% in 2025 alone. Prior to these deals, EchoStar was reportedly preparing to file for Chapter 11 bankruptcy due to a liquidity crisis, including missed interest payments and an FCC investigation. The turnaround was reportedly influenced by President Donald Trump, who met with EchoStar's president Charlie Ergen and FCC Chairman Brendan Carr. AT&T also finalized a $23 billion acquisition of spectrum from EchoStar. Boost Mobile, owned by EchoStar, entered a commercial partnership with SpaceX for Starlink's direct-to-cell capabilities. While SpaceX's IPO target is $1.75 trillion, analyst Nicholas Owens estimates its value closer to $780 billion. EchoStar reported $15 billion in 2025 revenue, a 5.2% year-over-year decline.