EchoStar Soars 43% As Trump Urges FCC To Settle Dispute

[jeslevine]

"EchoStar stock scrambled higher early Monday following reports from Bloomberg late Friday that President Donald Trump urged the company to cut a deal with the Federal Communications Commission for its wireless spectrum licenses.

Trump on Thursday met with EchoStar (SATS) Chairman Charlie Ergen and FCC Chair Brendan Carr to negotiate an end their feud over EchoStar's wireless spectrum licenses. Spectrum licenses are permits issued by the government that grant exclusive rights to use specific parts of the electromagnetic spectrum, such as certain radio frequencies.

Mobile wireless and satellite TV operator EchoStar owns Boost Mobile, HughesNet, Dish and Sling.

The FCC in May said it would investigate EchoStar's compliance with federal requirements to build out a nationwide 5G network, the Wall Street Journal reported in May. In 2019, Dish was tasked to deploy a 5G network to 70% of the U.S. and maintain cellular licenses worth billions of dollars.

However, the FCC has questioned EchoStar's build out and threatened to revoke some licenses. EchoStar argues that it has satisfied all its obligations and has been trying to protect its spectrum licenses."

EchoStar Soars 43% As Trump Urges FCC To Settle Dispute

EchoStar stock soars on reports that President Trump urged the company, FCC to reach a deal regarding spectrum licenses.

www.investors.com

 

[Yespage]

So shares went up when White House meddles in FCC's meddling instigated by those in the White House? Not certain why it went up. The allegation was POTUS said Ergen should 'make a deal'... IE give up a portion of access to something he purchased.

 

[Bruce]

Still down from March 3, at 31.07 then.

Way too early to say Dish/Echostar is out of trouble.

 

[dishdude]

Spectrum issue aside, that doesn't solve their debt and cashflow issues.

 

[navychop]

Bankruptcy does that.

 

[dishdude]

Bankruptcy does that.

They can't declare bk and keep all the assets, the business will look dramatically different after the restructuring.

 

[Scott Greczkowski]

They can't declare bk and keep all the assets, the business will look dramatically different after the restructuring.

Not really. They can make it through and continue on without much change.

Been there and done that.

 

[Bruce]

Not really. They can make it through and continue on without much change.

Been there and done that.

Business and personal are quite different, for a small basic example-

AI Overview

After a Chapter 11 bankruptcy, the original owners of the business may or may not continue to own the business, depending on the outcome of the reorganization plan. The company typically operates as a "debtor in possession" during the process, continuing its operations under court supervision.

 

[Scott Greczkowski]

I have worked at companies who have been through bankruptcy and in the end they were better off when all is said and done.

Bankruptcy is not a death sentence, in fact in many cases quite the opposite.

 

[nelson61]

And in the middle of all the speculation, the Directv forum is reporting info indicating Directv satellite is no longer accepting new signups in large portions of the country.

 

[navychop]

The goal of this form of bankruptcy is to restore a functioning company. Cannot do that if you strip the assets.

 

[dishdude]

The goal of this form of bankruptcy is to restore a functioning company. Cannot do that if you strip the assets.

They can be split into different businesses. Dish doesn't need the 5G network to operate as a satellite TV provider. Satellite internet could go to someone else, set top box manufacturing somewhere else, etc.

They'll all continue on but potentially under different ownership. The creditors will be lining up!