EchoStar stock roared more than 70% higher on Tuesday after AT&T said it agreed to purchase certain wireless spectrum licenses from the telecom company for about $23 billion in an all-cash deal.
The sale will add about 50 megahertz of mid-band and low-band spectrum to AT&T's network, with the licenses covering more than 400 markets across the U.S., AT&T said. The deal is expected to close in mid-2026, pending regulatory approval.
EchoStar said in a regulatory filing that the transaction is part of the company's "ongoing efforts to resolve the Federal Communications Commission's inquiries."
FCC Chairman Brendan Carr wrote in a May letter addressed to EchoStar cofounder and Chairman Charlie Ergen that the agency's staff would investigate the company's compliance with federal requirements to build a 5G network.