Echostar Shares Jump 15.5% on $23B Spectrum Deal with AT&T Surging to $1.13B Trade Volume Ranking 50th in Market Activity

On August 27, 2025, Echostar (SATS) surged 15.51% with a trading volume of $1.13 billion, marking a 53.7% decline from the previous day and ranking 50th in market activity. The stock’s sharp rise followed a $23 billion agreement to sell wireless spectrum licenses to AT&T, positioning the transaction as a pivotal financial and strategic milestone for the company.

The deal, expected to close by mid-2026, involves the transfer of 30 MHz of mid-band (3.45 GHz) and 20 MHz of low-band (600 MHz) spectrum licenses covering over 400 U.S. markets. Proceeds will be allocated to debt reduction and operational funding, addressing regulatory scrutiny from the FCC over underutilized spectrum. Echostar’s CEO emphasized the transaction as a critical step in resolving compliance concerns while maintaining its hybrid mobile network operator status under Boost Mobile via a partnership with AT&T.

Market analysts highlighted the transaction’s significance in mitigating regulatory risks and unlocking liquidity for Echostar. The all-cash structure provided certainty amid previous financial pressures, including a delayed interest payment in May 2025. By offloading spectrum assets at a premium—exceeding both acquisition costs and appraised value—the deal is seen as a strategic exit from a capital-intensive 5G buildout, aligning with AT&T’s expansion goals for 5G and fiber internet services.

Backtested results indicate the transaction’s financial impact: Echostar’s share price spiked 70% on the announcement, reflecting investor confidence in resolving regulatory uncertainties and securing capital. The deal also reinforces AT&T’s convergence strategy, aiming to grow converged customers who use both wireless and fiber services, with plans to expand fiber network reach to 50 million locations by 2030.