Latest news with #CharlieErgen
Yahoo
2 days ago
- Business
- Yahoo
Why EchoStar Plunged Today
EchoStar missed an interest payment on a loan tied to some wireless spectrum it owns. That spectrum license was called into question earlier this month by the SEC. EchoStar's Charlie Ergen is battling Elon Musk's SpaceX over the use of this spectrum, which can be used for satellite communications. 10 stocks we like better than EchoStar › Shares of EchoStar (NASDAQ: SATS) plunged 12.1% on Friday, after the company failed to make an interest payment on one of its senior notes secured by its wireless spectrum. The company is justifying missing the payment due to lingering uncertainty resulting from its current fight with the Federal Communications Commission over EchoStar's use -- or lack thereof -- of this key spectrum license. Investors never like to see a missed interest payment, as it brings up the specter of potential bankruptcy, but the situation isn't quite as dire as that -- yet. EchoStar is entrepreneur Charlie Ergen's company and houses the Dish TV, Sling TV, and Boost Mobile wireless services, along with the associated satellite services that serves those businesses, and some valuable wireless spectrum. That spectrum has become controversial of late. Per a 2019 deal, EchoStar was supposed to use that spectrum to launch a 5G network that would be able to rival the other big three telecom carriers. However, due to EchoStar's declining business, that buildout has been slow-going. On May 9, the FCC commissioner wrote a letter to the company, saying last year's extension for its spectrum licenses is under a new review in the new administration. Of note, Elon Musk's SpaceX would also like to use that spectrum, and has accused EchoStar of hoarding it without putting it to use in the agreed-upon time frame. While that letter was sent on May 9, today, EchoStar reportedly missed a $326 million interest payment on its 10.75% senior spectrum secured notes due in 2029, which was due to be paid today. The thinking, perhaps, is that since those notes were secured by the spectrum, and the status of that spectrum is now in flux due to the FCC review, EchoStar might as well not pay the interest unless it has to. Of note, the notes give EchoStar a 30-day grace period before it is technically in default. EchoStar has been desperately trying to transform itself, as its largest business is the declining pay-TV business. Going forward, the company is hoping to build up Boost Mobile both as a new 5G service as well as a satellite-enabled wireless service, utilizing EchoStar's existing satellites. While the missed interest payment is sort of voluntary and not necessarily a sign of an impending company default, the lingering spectrum controversy with the FCC isn't a great development. This is a story to steer clear of in the near term, until the turnaround story gets more clarity. Before you buy stock in EchoStar, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and EchoStar wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Billy Duberstein and/or his clients have no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why EchoStar Plunged Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
3 days ago
- Business
- Bloomberg
EchoStar Skips Bond Interests Over FCC Probe Uncertainty
EchoStar Corp., the wireless and pay-TV operator controlled by billionaire Charlie Ergen, skipped an interest payment due Friday because of uncertainty about a regulatory probe. The company said it won't make a $326 million cash interest payment on its 10.75% senior spectrum secured notes due 2029, citing impacts from a Federal Communications Commission review over its compliance with obligations to build a nationwide 5G network. It has a 30-day grace period to make the interest payment.
Phone Arena
3 days ago
- Business
- Phone Arena
Multi-billionaire owns company with a $20 billion stake in T-Mobile
Here's an interesting fact about T-Mobile that you might not know. Japanese investment holding company SoftBank, founded and run by Masayoshi Son (number 60 on the list of billionaires with $28.8 billion to his name) holds $20.4 billion worth of T-Mobile shares. As of this month, SoftBank owned 85.4 million T-Mobile shares or 7.64% of the carrier making it the second-largest stockholder of the company after the 51.54% owned by Deutsche Telekom. After T-Mobile closed on its purchase of Sprint on April 1st, 2020, all of SoftBank's Sprint shares were converted into 24% of T-Mobile , or 277.2 million shares. SoftBank received an additional 48.8 million shares of T-Mobile when a condition related to T-Mobile 's stock price was met in December 2023. The shares were to be given to SoftBank if T-Mobile 's shares hit $150 or above for a sustained period of time before the end of 2025. T-Mobile 's shares stayed above $150 for a sustained period around December 2023 triggering the release of the additional 48.8 million shares to SoftBank. The Japanese holding company has since reduced its stake in T-Mobile over time. As for Charlie Ergen, he finally got his wireless business. When T-Mobile bid $26 billion to acquire Sprint in 2018, it had to get regulatory approval from the FCC and the Justice Department. Both wanted another carrier to replace Sprint as the nation's fourth largest. A deal was made and T-Mobile sold all of Sprint's pre-paid assets including 9.3 million customers, Boost's retail network, employees, and plans to Dish Network. Dish also signed a seven-year MVNO deal with T-Mobile allowing its customers to use T-Mobile 's 5G network while Dish built its own standalone 5G network. At the end of 2023, EchoStar bought Dish giving that company control of Boost, which is still struggling to get traction as a major U.S. wireless provider. In a very competitive business, Boost has yet to generate excitement among consumers. Meanwhile, it seems likely that Deutsche Telekom will continue adding to its T-Mobile stake by buying more shares from SoftBank. In 2024, Deutsche exercised all of the call options on T-Mobile it had obtained from SoftBank and added 44.9 million shares to its holdings. Switch to Total 5G+ Unlimited 3-Month plan or Total 5G Unlimited and get a free iPhone. We may earn a commission if you make a purchase This offer is not available in your area.
Yahoo
13-05-2025
- Business
- Yahoo
Why EchoStar Stock Is Falling to Earth Today
The Federal Communications Commission is reportedly launching a probe into EchoStar's use of valuable spectrum. The company has been attempting to use the spectrum to build out a national wireless franchise, but others have been pressuring for access to the bandwidth. EchoStar is in a challenging position even without the probe, and investors should be cautious. 10 stocks we like better than EchoStar › The Federal Communications Commission (FCC) intends to launch a probe into EchoStar's (NASDAQ: SATS) compliance with government requirements for how it uses spectrum, as rivals line up for access to the bandwidth. Investors are concerned, sending EchoStar shares down as much as 13% for the day and down 9% as of 11:30 a.m. ET. EchoStar is a satellite television and communications company that has been trying to grow its cellular business. The company owns Boost Mobile, the nation's fourth-largest wireless carrier, and has said it intends to use its vast spectrum holdings to transform Boost into a viable competitor to the nation's three largest wireless operators. But the FCC is apparently concerned that EchoStar is not moving fast enough. The Wall Street Journal reports that the government agency would investigate EchoStar's compliance with federal requirements to build a nationwide 5G network with the spectrum in compliance with milestones set in 2019. In 2024, the commission altered some of the requirements to give EchoStar more time. But FCC Chairman Brendan Carr, in a letter to EchoStar chairman Charlie Ergen, said the FCC will seek comments on a petition to reconsider that decision. SpaceX, the satellite company founded by Elon Musk, has been lobbying for use of EchoStar's 2-gigahertz spectrum band for years. Given Musk's newfound influence in Washington, EchoStar investors need to take this threat seriously. That said, assuming the FCC goes through its normal processes, there is little risk of EchoStar losing its access to that spectrum overnight. SpaceX has previously asked only to share the spectrum, and not to take it away from EchoStar completely, meaning Ergen should have time to continue to build out Boost. The bigger question is whether Boost can succeed in establishing itself as a viable competitor to AT&T, Verizon Communications, and T-Mobile. Until there are real signs of progress on that front, investors would be wise to look elsewhere. Before you buy stock in EchoStar, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and EchoStar wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $598,613!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $753,878!* Now, it's worth noting Stock Advisor's total average return is 922% — a market-crushing outperformance compared to 169% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool recommends T-Mobile US and Verizon Communications. The Motley Fool has a disclosure policy. Why EchoStar Stock Is Falling to Earth Today was originally published by The Motley Fool
Yahoo
13-05-2025
- Business
- Yahoo
Why EchoStar Stock Is Falling to Earth Today
The Federal Communications Commission is reportedly launching a probe into EchoStar's use of valuable spectrum. The company has been attempting to use the spectrum to build out a national wireless franchise, but others have been pressuring for access to the bandwidth. EchoStar is in a challenging position even without the probe, and investors should be cautious. 10 stocks we like better than EchoStar › The Federal Communications Commission (FCC) intends to launch a probe into EchoStar's (NASDAQ: SATS) compliance with government requirements for how it uses spectrum, as rivals line up for access to the bandwidth. Investors are concerned, sending EchoStar shares down as much as 13% for the day and down 9% as of 11:30 a.m. ET. EchoStar is a satellite television and communications company that has been trying to grow its cellular business. The company owns Boost Mobile, the nation's fourth-largest wireless carrier, and has said it intends to use its vast spectrum holdings to transform Boost into a viable competitor to the nation's three largest wireless operators. But the FCC is apparently concerned that EchoStar is not moving fast enough. The Wall Street Journal reports that the government agency would investigate EchoStar's compliance with federal requirements to build a nationwide 5G network with the spectrum in compliance with milestones set in 2019. In 2024, the commission altered some of the requirements to give EchoStar more time. But FCC Chairman Brendan Carr, in a letter to EchoStar chairman Charlie Ergen, said the FCC will seek comments on a petition to reconsider that decision. SpaceX, the satellite company founded by Elon Musk, has been lobbying for use of EchoStar's 2-gigahertz spectrum band for years. Given Musk's newfound influence in Washington, EchoStar investors need to take this threat seriously. That said, assuming the FCC goes through its normal processes, there is little risk of EchoStar losing its access to that spectrum overnight. SpaceX has previously asked only to share the spectrum, and not to take it away from EchoStar completely, meaning Ergen should have time to continue to build out Boost. The bigger question is whether Boost can succeed in establishing itself as a viable competitor to AT&T, Verizon Communications, and T-Mobile. Until there are real signs of progress on that front, investors would be wise to look elsewhere. Before you buy stock in EchoStar, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and EchoStar wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $598,613!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $753,878!* Now, it's worth noting Stock Advisor's total average return is 922% — a market-crushing outperformance compared to 169% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool recommends T-Mobile US and Verizon Communications. The Motley Fool has a disclosure policy. Why EchoStar Stock Is Falling to Earth Today was originally published by The Motley Fool Sign in to access your portfolio
