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Bond Market News
AT&T to Acquire EchoStar Spectrum Licenses for $23bn
August 27, 2025
AT&T has agreed to buy spectrum licenses from EchoStar in a deal valued at $23bn, helping the latter avoid bankruptcy while addressing regulatory concerns over its unused airwaves. The all-cash transaction adds about 50 MHz of low- and mid-band spectrum to AT&T’s portfolio and is expected to close by 2026. Sources said that both the White House and FCC received briefings before the announcement. EchoStar had faced pressure from the FCC, which launched an investigation into its spectrum use earlier this year. The company had skipped bond payments and was considering bankruptcy amid uncertainty over its 5G strategy.
AT&T will finance the acquisition with a mix of cash and debt, and reiterated plans for up to $20bn in share buybacks through 2027. It has been spending heavily to expand its fibre-optic network, and had earlier agreed to buy consumer fiber operations of Lumen Technologies Inc. for $5.75bn. EchoStar, meanwhile, highlighted that it holds $5bn in cash and will resume coupon payments, including arrears on previously missed interest.
The market reaction was sharp, and EchoStar’s share price rose by 70% intraday. Dish DBS Corp, the bond issuing entity for EchoStar, also saw a rally in bond prices. Its 7.375% 2028s jumped higher by 11 points and is currently trading at 88.64, yielding 12.21%.
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