Elon Musk’s SpaceX has agreed to buy unpaired AWS-3 licenses from EchoStar Corp. (SATS) in a $2.6 billion stock deal, EchoStar said Thursday. The move adds to the $17 billion agreement the two companies signed in September and still needs regulatory approval before closing.
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The purchase will give SpaceX extra airwaves to strengthen Starlink, its satellite internet business that already serves homes, planes, and ships in over 100 countries. The company has been scaling quickly as demand for low-cost, high-speed internet grows around the world.
EchoStar Sells after Government Scrutiny
EchoStar has been selling off its spectrum following a Federal Communications Commission (FCC) review into whether the company was holding unused licenses. In August, it sold some of its frequencies to AT&T (T) for $23 billion, a deal that helped settle the inquiry.
The FCC has since closed the investigation, clearing the way for more transactions. EchoStar also reported a $16.5 billion write-down this week as it shut down parts of its 5G network that it no longer plans to use.
What It Means for Starlink
The new licenses will help Starlink improve its speed and coverage, especially in areas with heavy data traffic. The company already has more than 6,000 satellites in orbit and is preparing to launch an upgraded version of its network designed to handle more users and devices.
Industry watchers say the deal gives SpaceX more flexibility as it competes with major telecom and satellite players. It also strengthens its position as one of the few firms controlling both satellite hardware and spectrum rights, a combination key to keeping service reliable.
The Deal Tells Us How Valuable Spectrum Has Become
This latest deal tells us how valuable spectrum has become as global internet demand keeps rising. For SpaceX, it’s another sign that Musk is focused on scaling Starlink faster while maintaining control over the technology that powers it.
If approved, the EchoStar purchase will mark one of SpaceX’s biggest spectrum acquisitions yet and another step in its plan to bring Starlink to every corner of the planet.
What Is the Prediction for Tesla Stock?
When it comes to Elon Musk’s companies, most of them are privately held. However, retail investors can invest in his most popular company, Tesla (TSLA). Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 13 Buys, 12 Holds, and seven Sells assigned in the past three months. Furthermore, the average TSLA price target of $299.52 per share implies 10% downside risk.
