EchoStar (SATS) Extends Rally by 15.5% on $23-Billion License Sale

We recently published 10 Stocks With Easy 7-38% Upside in Just a Day. EchoStar Corporation (NASDAQ:SATS) is one of the best performers on Wednesday.

EchoStar extended its winning streak to a fourth consecutive day on Wednesday, jumping 15.51 percent to close at $58.76 apiece as investors continued to gobble up shares following its $23 billion sale of wireless spectrum licenses to AT&T, effectively resolving one of its biggest regulatory hurdles that once feared would put the company into bankruptcy.

In a statement, EchoStar Corporation (NASDAQ:SATS) said it entered into a definitive agreement with AT&T for the sale of its 3.45 GHz and 600 MHz spectrum licenses—a total of 50 MHz of nationwide spectrum—as part of its resolution to its battle with the Federal Communications Commission.

In addition, EchoStar Corporation (NASDAQ:SATS) and AT&T amended their network services agreement to create a hybrid mobile network operator (MNO) relationship.

The license sale will enable rapid deployment of the purchased spectrum to US consumers across the country, with AT&T given the option to lease the spectrum, pending the closing of the spectrum sale.

Through Boost Mobile’s hybrid MNO infrastructure, subscribers will continue to receive service through its cloud-native 5G core, primarily connected to AT&T’s nationwide network.

Boost Mobile users will also retain access to T-Mobile’s network, while AT&T will provide the main coverage. However, Boost Mobile’s radio access network will be gradually decommissioned as part of the transition.

Following the announcement, EchoStar Corp. (NASDAQ:SATS) shares already spiked up by 97 percent in just the past two trading days.

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