EchoStar’s stock soared as much as 50% on Monday, following a Bloomberg report late Friday that former U.S. President Donald Trump had intervened in talks over the company’s wireless spectrum licenses. Trump reportedly urged EchoStar Chairman Charlie Ergen and Federal Communications Commission (FCC) Chair Brendan Carr to reach an agreement over the future of the company’s spectrum holdings.
The report said Trump met with Ergen on Thursday and called Carr, who then joined them at the White House. EchoStar has not commented publicly on the meeting.
The FCC began investigating EchoStar in May over concerns that it had not fulfilled its obligations to deploy 5G services, raising the possibility that its valuable wireless spectrum licenses could be revoked. The company has acknowledged missing about $500 million in interest payments and attributed some of the financial strain to regulatory uncertainty.
The market reacted swiftly to the news, with shares hitting an intraday high of $25.29 on Monday—up from $16.84 at Friday’s close. The surge marked a sharp reversal for EchoStar, whose stock had lost about 30% of its value since the FCC’s probe was disclosed.
Analysts at UBS noted in a Sunday briefing that the new developments could reduce the risk of EchoStar losing its airwaves and may renew interest in its spectrum assets. They cited the potential for partnerships or acquisitions from major wireless players such as T-Mobile US and AT&T, given the current scarcity of available spectrum.
Despite the rally, UBS maintained a “neutral” rating on the stock, citing ongoing regulatory uncertainty until a definitive resolution is reached.