EchoStar Stock Skyrockets 79% After AT&T’s $23 Billion Spectrum Deal

EchoStar stunned Wall Street today as its stock price rocketed nearly 79% following a blockbuster deal with AT&T.

The telecom giant announced it will acquire EchoStar’s wireless spectrum licenses in the 3.45 GHz and 600 MHz bands for an eye-watering $23 billion, instantly injecting fresh life into EchoStar’s shaky finances.

The agreement ends months of uncertainty, as EchoStar had been under pressure from the FCC, with threats of spectrum license revocation looming. The deal not only secures the company’s future but also hands AT&T an additional 50MHz of valuable spectrum across the U.S. – a move expected to supercharge its fiber and 5G rollout.

AT&T confirmed that despite the massive price tag, it still intends to follow through with its $20 billion share repurchase program planned for 2025–2027. The spectrum will be leased back for Boost Mobile, EchoStar’s young carrier brand under its DISH Wireless arm, which had struggled to expand amid mounting financial trouble and missed payments.

For EchoStar, the timing couldn’t be more critical. Earlier this year the company admitted to skipping $500 million in interest payments and warned about its ability to continue operating. With the AT&T deal, cash-strapped EchoStar gains breathing room and investors responded with explosive enthusiasm.

AT&T CEO John Stankey described the purchase as the “last building block” needed to secure AT&T’s industry leadership. He emphasized that bringing unused spectrum into service will immediately improve network performance and benefit consumers. Analysts at Moffett Nathanson agreed, noting the sale price far exceeded the firm’s carrying value and may indicate EchoStar is moving toward a full liquidation strategy – a scenario investors appear to welcome.

EchoStar’s turbulent journey has included political pressure as well. Reports suggested former President Trump personally encouraged EchoStar leadership and the FCC to resolve regulatory disputes earlier this year. Following that intervention, the stock saw a temporary spike, but today’s AT&T windfall marks its most dramatic rally yet.

Whether this transaction becomes EchoStar’s turning point or the start of its breakup remains to be seen, but for now, the market is celebrating one of the year’s most astonishing comebacks.