How EchoStar went from struggling to the Fortune 500’s best shareholder return thanks to Elon Musk

EchoStar, which sits at No. 302 on the Fortune 500 list, released this Wednesday, saw a dramatic turnaround in 2025 after it sold its wireless spectrum to SpaceX in September 2025 for $17 billion—with $8.5 billion paid in cash and then $8.5 billion in equity, or roughly 2% to 3% of the Elon Musk-led company. With $11.1 billion in SpaceX equities after SpaceX bought another $2.6 billion in spectrum in November 2025, EchoStar has gone from a limping business to a mouth-watering public market proxy ahead of SpaceX’s initial public offering later this month.

In June 2025, EchoStar was reportedly preparing to file for Chapter 11 bankruptcy. The satellite company was under investigation from the Federal Communications Commission (FCC) over its compliance with federal obligations to provide its 5G service across the U.S. The previous year, satellite TV provider DirecTV abandoned its proposed deal to acquire EchoStar’s video distribution business because of a failed debt-exchange offer. EchoStar previously disclosed $500 million of missed interest payments as a result the company’s broader liquidity crisis, as seen in the FCC probe.

But the company saw a change of fate last June after President Donald Trump reportedly sat down with EchoStar president and co-founder Charlie Ergen and FCC Chairman Brendan Carr to push EchoStar to begin selling its spectrum licenses. In August 2025, AT&T finalized a $23 billion acquisition that would add an average of about 50 MHz of low- and mid-band spectrum to AT&T’s holding. SpaceX followed up that deal with one of their own, agreeing to buy wireless spectrum licenses. Boost Mobile, which is owned by EchoStar, also became a long-term commercial partner with SpaceX, agreeing to allow its subscribers access to Starlink’s direct-to-cell satellite capabilities. The acquisition was mutually beneficial: EchoStar had a clean balance sheet, and SpaceX would be able to boost the network capacity of its Starlink programs and 5G connectivity. 

The SpaceX news sent EchoStar shares soaring 19% in early trading, and the stock would triple its share price from the time of the deal to the end of the year. AT&T stock is down following news of SpaceX’s pending IPO, with investors seeing a rapid switch to satellite internet compared to AT&T’s primarily broadband business.

What SpaceX’s IPO means for EchoStar

EchoStar’s relationship with SpaceX ahead of its long-awaited IPO effectively makes the company stock a backdoor proxy for SpaceX stock, the majority of which is already tied up. The spectrum company’s close and substantial financial ties with Musk’s satellite giant means it will likely follow the same trajectory as SpaceX. 

While investor excitement around the future of space exploration has helped boost SpaceX’s IPO target to $1.75 trillion, which would make it the biggest IPO in history, scooping up shares of EchoStar isn’t without risk. According to Morningstar analyst Nicholas Owens, SpaceX’s actual value is closer to $780 billion—about half of its IPO target. Owens encouraged investors to hold off on buying the stock until the hype dies down and SpaceX can prove its path to profitability. Moreover, EchoStar has continued to fall short of financial expectations, reporting $15 billion in 2025 revenue, a 5.2% year-over-year decline, as a result in part of diminishing subscribers across its pay-TV, retail wireless, and broadband and satellite services.

Ergen told investors in EchoStar’s earnings presentation earlier this year that the company would put its trust in Musk.

“When you connect any square inch of the planet, that’s just a big business,” Ergen said. “They’ve been the best company I’ve ever worked with in 45 years. They’re just responsive. They’re creative. They move at a pace that most companies don’t. I don’t think any amount of valuation is probably crazy there.”