SpaceX will acquire wireless spectrum licenses from EchoStar Corp. in a $17 billion cash-and-stock deal, a move aimed at strengthening its Starlink network and advancing direct-to-device mobile services.
In a statement on Monday, the Elon Musk-backed company confirmed it will purchase EchoStar’s AWS-4 and H-block spectrum licenses. The deal consists of up to $8.5 billion in cash and $8.5 billion in SpaceX stock.
Shares of EchoStar surged as much as 64% in premarket trading following the announcement.
EchoStar said proceeds from the transaction will be used to retire debt and fund operational growth, while SpaceX has also agreed to cover about $2 billion in cash interest payments on EchoStar debt through November 2027.
The acquisition is expected to resolve inquiries from the U.S. Federal Communications Commission (FCC), which had launched a review earlier this year into whether EchoStar was meeting its obligations for spectrum usage.
The AWS-4 spectrum, also known as the 2 GHz band, supports both terrestrial mobile transmissions and satellite-to-ground communications. EchoStar had acquired rights to the band in 2011 but faced regulatory pressure over underutilization.
The FCC probe intensified after SpaceX petitioned the regulator for access to the 2 GHz band, arguing EchoStar had failed to fully deploy the licenses.
Analysts said the acquisition will give SpaceX more independence in offering direct-to-device services, complementing its existing partnership with T-Mobile and enabling greater control over its Starlink network.
EchoStar has been under financial strain in recent months, skipping bond payments and exploring restructuring options. Last month, the company agreed to sell additional spectrum assets to AT&T Inc. for about $23 billion.
The sale to SpaceX follows reports that EchoStar had been considering Starlink among other potential buyers.
Since launching its first Starlink satellites in 2019, SpaceX has grown rapidly, with more than 5 million subscribers in over 100 countries as of June 2025.
The company also secured regulatory approval in India earlier this year, positioning Starlink for expansion into one of the world’s largest internet markets.
The EchoStar deal marks a significant step for SpaceX as it consolidates spectrum holdings crucial to scaling Starlink’s global reach and advancing mobile connectivity from space.