Yazılar

EchoStar Shares Jump 50% After Trump Reportedly Urges FCC Deal

/in /tarafından

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.

Trump Urges EchoStar, FCC Chair to Resolve Wireless Spectrum Dispute

/in /tarafından

President Donald Trump personally urged EchoStar Chairman Charlie Ergen and Federal Communications Commission (FCC) Chair Brendan Carr to come to an agreement regarding the future of EchoStar’s wireless spectrum licenses, Bloomberg reported on Friday. Following the news, EchoStar’s shares surged 52% in after-hours trading.

The discussions included a meeting at the White House on Thursday with Ergen and a phone call to Carr, who later joined the meeting in person, according to Bloomberg. Neither the White House nor EchoStar commented on the report, and the FCC did not immediately respond to Reuters’ requests for comment.

EchoStar has been attempting to protect its portfolio of wireless spectrum licenses from potential revocation by the FCC amid ongoing regulatory scrutiny. Last year, satellite TV provider DirecTV abandoned its plan to acquire EchoStar’s satellite television business, which includes competitor Dish TV, due to a failed debt-exchange offer.

In May, the FCC announced it was investigating EchoStar’s compliance with obligations to provide 5G service in the United States, focusing on the company’s extension requests for network buildout and mobile satellite services.

EchoStar criticized the FCC’s actions, stating that the public disclosure of the investigation was harming its network deployment and threatening its viability as a wireless service provider. The company warned that reversing prior spectrum authorizations—licenses it paid billions for and invested heavily in—would contradict established FCC precedent.

Previously, EchoStar revealed it had missed approximately $500 million in interest payments, attributing the default to uncertainties caused by the FCC’s ongoing review.