Shares of EchoStar Corp (NASDAQ:SATS) are skyrocketing Tuesday, climbing over 70% after the company announced a definitive agreement to sell a portfolio of its wireless spectrum licenses to AT&T Inc (NYSE:T) in a $23 billion all-cash transaction.
What To Know: The move marks one of the season’s most significant strategic deals, positioning AT&T to bolster its 5G network and fiber infrastructure. The acquisition will provide AT&T with approximately 50 MHz of crucial nationwide spectrum, including 30 MHz of 3.45 GHz mid-band and 20 MHz of 600 MHz low-band airwaves.
This infusion is critical for enhancing network capacity, expanding its 5G and home internet offerings, and intensifying its competitive stance against rivals Verizon and T-Mobile.
For EchoStar, the massive influx of capital provides a clear path to strengthening its financial position. The company stated the proceeds will be used to retire certain debt obligations. “This transaction puts our business on a solid financial path, further facilitating EchoStar’s long-term success,” said CEO Hamid Akhavan.
As part of the arrangement, the two companies also extended their wholesale network services agreement, ensuring EchoStar's Boost Mobile brand will continue to be serviced by AT&T’s network. The deal is expected to close by mid-2026, pending regulatory approvals.
Price Action: According to data from Benzinga Pro, SATS shares are trading higher by 72.62% to $51.52 Tuesday afternoon. The stock has a 52-week high of $55.19 and a 52-week low of $14.90.
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How To Buy SATS Stock
By now you're likely curious about how to participate in the market for EchoStar – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
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