EchoStar stock soars on potential Verizon spectrum sale talks

Investing.com -- EchoStar Corporation (NASDAQ: SATS) stock jumped 7.3% in after-hours trading Monday following a Bloomberg article reporting that Verizon Communications Inc (NYSE: VZ) is in discussions to purchase some of the company’s wireless spectrum assets.

The talks specifically involve EchoStar’s AWS-3 licenses, which are considered valuable for carrying 5G wireless signals, according to Bloomberg, citing people familiar with the matter who requested anonymity.

If the deal materializes, Verizon would join AT&T Inc (NYSE: T) and SpaceX as buyers of airwaves from Charlie Ergen’s satellite-TV and telecom company. EchoStar began divesting some of its assets last month to resolve a Federal Communications Commission investigation into whether the company was deploying wireless service quickly enough.

A regulatory filing from EchoStar lists the AWS-3 spectrum with a "carrying amount" of $9.8 billion. Sources noted that licenses recently acquired by AT&T and SpaceX sold for significantly above their carrying values, though this premium might not necessarily apply to a potential Verizon transaction.

The talks come as another portion of the AWS-3 band is scheduled to be auctioned by the federal government next year, potentially adding context to the timing of these private negotiations.

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