SpaceX Strikes $17 Billion Spectrum Deal as Valuation Nears $400 Billion

SpaceX, led by Elon Musk, has reached a $17 billion deal with EchoStar to obtain spectrum licenses that will enhance its Starlink satellite network. The purchase involves EchoStar’s AWS-4 and H-block licenses, with payment structured as up to $8.5 billion in cash and an equivalent amount in SpaceX stock. As part of the deal, SpaceX will cover about $2 billion in cash interest payments tied to EchoStar’s debt through late 2027.

The companies will also establish a long-term partnership enabling Boost Mobile users, a unit of EchoStar, to tap into SpaceX’s upcoming Starlink Direct to Cell service. Following the announcement, EchoStar’s shares jumped 19% in premarket trading on Monday. The company indicated that both this deal and its ongoing arrangement with AT&T should help address recent FCC concerns over its spectrum usage and the expansion of 5G services in the U.S. EchoStar added that proceeds from the transaction will be directed partly toward debt reduction, while operations at Dish TV, Sling, and Hughes will remain unaffected.

Elon Musk projects that SpaceX will generate approximately $15.5 billion in commercial revenue in 2025—surpassing NASA’s entire budget. Starlink, SpaceX’s satellite internet arm, plays a significant role in driving this revenue, with an estimated $12.3 billion in revenue projected and 7,500+ satellites already in orbit.

SpaceX is planning a new $1 billion fundraising round focused on employee shares, which may raise its valuation to approximately $400 billion, up from $350 billion in December 2024. This increase reflects strong investor confidence despite ongoing political and regulatory risks. SpaceX remains privately held and continues to pursue private share sales, with no immediate plans for a public offering.