Overview

• SpaceX will acquire EchoStar’s AWS-4 and H-block licenses for up to $8.5 billion in cash and up to $8.5 billion in SpaceX stock.
• Under the agreement, SpaceX will fund about $2 billion of EchoStar’s cash interest payments through November 2027.
• The companies signed a commercial pact enabling EchoStar’s Boost Mobile subscribers to use Starlink’s Direct to Cell service.
• EchoStar terminated its new LEO satellite contract with MDA, effectively ending its plan to build a direct-to-device constellation.
• EchoStar shares jumped roughly 20% in premarket trading as the company said proceeds will retire debt, while SpaceX says the spectrum will support higher-capacity next-generation Direct to Cell satellites.