SpaceX IPOs tomorrow at a $1.75 trillion valuation. $SATS owns more than 2% of SpaceX.
It seems like almost nobody is doing the math on what that is actually worth.
EchoStar swapped a chunk of its wireless spectrum for a stake of more than 2% in SpaceX last September as part of the FCC approved $40 billion deal with SpaceX and AT&T.
At the time SpaceX was valued far below where it is about to list. Tomorrow that stake gets repriced against a $1.75 trillion company.
At that $1.75 trillion price, TD Cowen pegs EchoStar’s SpaceX stake at roughly $31 billion and puts a $155 target on the stock.
But SpaceX is widely expected to trade well above its IPO price.
Run the same math at a $2 trillion valuation and that stake jumps to around $40 billion on its own, which is more than EchoStar’s entire $36 billion market cap today.
You would be getting the SpaceX position alone for more than the whole company is currently worth, with everything else thrown in for free.
And there is a lot else. A $40 billion spectrum sale to AT&T and SpaceX that wipes out the 2026 debt wall everyone was scared of.
Around 5 million satellite TV customers. 2 million Sling subscribers. 7 million Boost Mobile customers. 700,000 broadband customers.
One of the most valuable spectrum portfolios in the country sitting on top of roughly $10 billion in net cash.
The market spent years treating EchoStar as a dying satellite TV company buried in debt. That story is finished.
The spectrum deal cleared the overhang and the SpaceX stake quietly turned this into one of the only ways for public investors to own a real piece of SpaceX.
The honest risk is the roughly $22 billion in debt and the fact that the FCC transfers do not fully close until 2027. This is not a clean bet.
But at $116, with SpaceX about to list and likely run toward $2 trillion, the math points higher. TD Cowen sees $155 even using the conservative number.
SpaceX prices tonight. EchoStar owns 2% of it.
This purchase order underscores Sivers' $SIVEF
growing momentum in the defense and commercial satellite
communications market, as its BFICS play a critical role as a key enabler of next-generation multi-orbit satellite communications platforms. https://t.co/ruyTnlbGTW