SpaceX to buy EchoStar spectrum licenses for $17B to boost Starlink

Elon Musk's SpaceX agreed on Monday to acquire wireless spectrum licenses from EchoStar for about $17 billion, a deal that includes cash, stock and debt support and that the companies say will accelerate SpaceX's Starlink Direct to Cell satellite mobile service and ease regulatory pressure on EchoStar. The definitive agreement covers EchoStar's AWS4 and Hblock spectrum licenses and pairs the sale with a longterm commercial arrangement allowing EchoStar's Boost Mobile subscribers to connect to SpaceX's next generation Starlink Direct to Cell network through EchoStar's cloud-native 5G core, the companies said.

Under the terms, SpaceX will pay up to $8.5 billion in cash and up to $8.5 billion in SpaceX stock, and will also fund roughly $2 billion of cash interest payments on EchoStar debt through November 2027, the companies said. EchoStar said proceeds will be used to retire certain debt obligations and support ongoing operations and growth initiatives. Closing is subject to regulatory approvals and other customary conditions.

The transaction gives SpaceX control of midband spectrum it says will let it develop optimized 5G protocols for a future generation of Starlink satellites...