SATS

The most notable reason for the surge is the company's announcement of a definitive agreement to sell certain spectrum licenses to AT&T for approximately $23 billion. This all-cash transaction involves 50 MHz of EchoStar's nationwide 3.45 GHz and 600 MHz spectrum licenses.

For EchoStar, this deal represents a strategic pivot that allows the company to monetize valuable spectrum assets while maintaining its presence in the wireless market through the enhanced wholesale agreement. The partnership with AT&T’s extensive network infrastructure enables EchoStar to continue serving customers under the Boost Mobile brand without the capital-intensive burden of maintaining its own nationwide network.

The sale of spectrum to AT&T helps EchoStar avoid potential FCC penalties related to underutilization of its spectrum. By selling to AT&T, EchoStar aligns itself with a regulatory ally and can leverage AT&T’s infrastructure to maintain its MNO status without the capital-intensive burden of building a standalone network.