EchoStar Sells AWS-3 Spectrum To SpaceX In $2.6 Billion Deal Amid FCC Pressure

• The sale helps EchoStar avoid FCC compliance risks and a looming June 2026 re-auction.
• The company already announced a $23 billion spectrum sale to AT&T in August.
• EchoStar’s stock was down in pre-market trade after the company reported a massive loss of $44.37 per share.

EchoStar (SATS) announced on Thursday that it has sold its nationwide AWS-3 spectrum licenses to SpaceX for $2.6 billion in stock, marking a steep 73% discount to the $9.8 billion book value the company reportedly assigned the assets.

This marks the continuing liquidation of wireless holdings that the telecom company has spent over a decade acquiring. Despite the sale, SATS’ stock dipped more than 2.3% in pre-market trade after the company reported an earnings miss and revenue that fell far short of Wall Street’s estimates. However, retail sentiment on Stocktwits around EchoStar improved to ‘bullish’ from ‘neutral’ as chatter increased to ‘high’ from ‘low’ levels over the past day.

Meanwhile, retail sentiment around SpaceX, which is not a publicly listed company, was in the ‘bullish’ zone, accompanied by ‘extremely high’ levels of chatter.

EchoStar Deepens Spectrum Selloff

EchoStar faced mounting FCC pressure over compliance with buildout requirements and a looming June 2026 re-auction that could have triggered shortfall payments if bids fell below $3.3 billion. By selling now at a significant discount, EchoStar avoids that regulatory risk while deepening ties with SpaceX's direct-to-cell Starlink service.

“The transactions were instrumental in resolving the FCC's review of the company's spectrum utilization,” the company said in its Q3 earnings statement.

The deal builds on a September pact with SpaceX and values the unpaired AWS-3 licenses in the 1695-1710 MHz band at a fraction of what EchoStar paid to acquire them in FCC auctions. Bloomberg reported in late September that EchoStar was also exploring a sale to Verizon (VZ), though those talks appear not to have materialized into a formal transaction. Verizon's stock edged 0.3% in pre-market trade, with retail sentiment trending in 'bearish' territory over the past day.

EchoStar is taking payment entirely in SpaceX equity rather than cash, indicating that it is betting on appreciation in Elon Musk's private space venture. The move extends a fire sale that has already generated $23 billion from spectrum sales to AT&T (T).

Echostar’s Earnings Q3 Miss

EchoStar reported Q3 2025 revenue of $3.6 billion and a loss per share of $44.37, contributing to the pre-market drop in its stock. Wall Street was expecting revenue of $3.7 billion and a loss of $1.22 per share.

The company also announced the creation of EchoStar Capital, with Hamid Akhavan as CEO of the new division. Charles W. Ergen, Chairman and Co-founder of EchoStar Corporation, has been appointed to serve as President and CEO of the company and assume the operating responsibility for the Pay-TV and Wireless business units. 

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