EchoStar does not believe T-Mobile spectrum option will be exercised

EchoStar (SATS) disclosed last night in its annual filing that throughout 2023, it has was actively involved in negotiations with counterparties to obtain the financing necessary to exercise the 800 MHz purchase option for T-Mobile’s (TMUS) airwaves. “However, we have been unsuccessful in our attempts to reach terms for a definitive financing agreement. Due to the relatively short time remaining before the 800 MHz purchase option’s expiration on April 1, 2024, we no longer believe it is probable that we will exercise the option,” the company said in the filing. EchoStar reduced the probability weighted value of the spectrum option to zero. As a result of the probability weighted derivative’s fair value being zero during Q4 and the year ended December 31, 2023, it reduced a loss of $1.601B and $1.793B, respectively. Shares of EchoStar are down 7% to $12.15 following last night’s earnings report.