Elon Musk Getty Images Share on Facebook Share on X Share to Flipboard Send an Email Show additional share options Share on LinkedIn Share on Pinterest Share on Reddit Share on Tumblr Share on Whats App Print the Article Post a Comment Charlie Ergen's EchoStar has struck a definitive agreement with Elon Musk's SpaceX to sell the company's AWS-4 and H-block spectrum licenses for approximately $17 billion, consisting of up to $8.5 billion in cash and up to $8.5 billion in SpaceX stock, the companies said Monday. "Additionally, the definitive agreement provides for SpaceX to fund an aggregate of approximately $2 billion of cash interest payments payable on EchoStar debt through November of 2027," they said. In connection with the transaction, SpaceX and EchoStar will enter a long-term commercial agreement, "which will enable EchoStar's Boost Mobile subscribers - through its cloud-native 5G core - to access SpaceX's next-generation Starlink Direct to Cell service," according to the companies. Related Stories TV 'Alien: Earth' Creator on That Wild Stand-Alone Movie Episode and Elon Musk-Inspired Twist Movies Alex Gibney's Elon Musk Documentary Lands U.S. Theatrical Distribution FCC chairman Brendan Carr, in a May letter, had outlined concerns about EchoStar's 5G network buildout obligations and the use of some spectrum licenses following complaints from Musk's SpaceX that EchoStar wasn't using 2 GHz/AWS-4 spectrum and should therefore let it and other satellite firms put it to use. "For the past decade, we've acquired spectrum and facilitated worldwide 5G spectrum standards and devices, all with the foresight that direct-to-cell connectivity via satellite would change the way the world communicates," said Hamid Akhavan, president and CEO of EchoStar. "This transaction with SpaceXcontinues our legacy of putting the customer first as it allows for the combination of AWS-4 and H-block spectrum from EchoStar with the rocket launch and satellite capabilities from SpaceX to realize the direct-to-cell vision in a more innovative, economical and faster way for consumers worldwide."Said Gwynne Shotwell, president and COO of SpaceX: "We're so pleased to be doing this transaction with EchoStar as it will advance our mission to end mobile dead zones around the world. SpaceX's first-generation Starlink satellites with Direct to Cell capabilities have already connected millions of people when they needed it most - during natural disasters so they could contact emergency responders and loved ones - or when they would have previously been off the grid. In this next chapter, with exclusive spectrum, SpaceX will develop next-generation Starlink Direct to Cell satellites, which will have a step change in performance and enable us to enhance coverage for customers wherever they are in the world."EchoStar said that it anticipates the SpaceX transaction "along with the previously announced spectrum sale [to AT&T] will resolve the Federal Communications Commission's (FCC) inquiries."Closing of the proposed transaction is subject to the required regulatory approvals and "other closing conditions." Its proceeds will be used for, among other things, "retiring certain debt obligations and funding EchoStar's continued operations and growth initiatives," the company said. "Current operations of EchoStar's Dish TV, Sling and Hughes will not be impacted by this transaction." EchoStar was represented by White & Case LLP and Steptoe & Johnson PLLC for this transaction. SpaceX was represented by Gibson Dunn & Crutcher LLP and HWG LLP. THR Newsletters Sign up for THR news straight to your inbox every day Subscribe Sign Up howard stern Howard Stern Denies SiriusXM Firing Rumors, Says "I Can't Leave Now" Heat Vision AMC Theatres Offers Horror Fans Cost-Saving "Slash Pass" Timed to 'The Conjuring: The Last Rites' THR, Esq 'It Ends With Us' Discovery Sparks Lawsuit Against Rebel Wilson in Sprawling Legal Battle Over 'The Deb' THR, Esq AI Giant Anthropic to Pay $1.5 Billion to Authors in Landmark Settlement Representation Car Enthusiast Digital Brand Donut Media Signs With CAA (Exclusive) orson welles Orson Welles' Lost Movie Will Use AI to Reconstruct Missing 43 Minutes howard stern Howard Stern Denies SiriusXM Firing Rumors, Says "I Can't Leave Now" Heat Vision AMC Theatres Offers Horror Fans Cost-Saving "Slash Pass" Timed to 'The Conjuring: The Last Rites' THR, Esq 'It Ends With Us' Discovery Sparks Lawsuit Against Rebel Wilson in Sprawling Legal Battle Over 'The Deb' THR, Esq AI Giant Anthropic to Pay $1.5 Billion to Authors in Landmark Settlement Representation Car Enthusiast Digital Brand Donut Media Signs With CAA (Exclusive) orson welles Orson Welles' Lost Movie Will Use AI to Reconstruct Missing 43 Minutes