EchoStar Stock Soars on Report of White House Intervention on Spectrum Issue

Dish Network owner EchoStar (SATS) shares skyrocketed 45% Monday morning on a report that President Donald Trump had intervened to help the satellite TV provider hold onto its valuable spectrum licenses.

Bloomberg reported Friday that the president met with EchoStar Chairman Charlie Ergen and Federal Communications Commission (FCC) Chairman Brendan Carr at the White House and called on them to work out a deal. The report noted that the FCC had launched an investigation last month into whether the company was meeting certain obligations for its wireless and satellite rights. The Wall Street Journal reported earlier this month that EchoStar was considering filing for Chapter 11 bankruptcy to protect it from the possibility of losing those licenses.

Bloomberg said Trump told Ergen and Carr he didn’t want a major American company to go bankrupt, as it would cause uncertainties for other firms. 

EchoStar has missed several debt interest payments recently, writing in a regulatory filing that the FCC spectrum threats have “effectively frozen our ability to make decisions” about how to grow and invest in its Boost Mobile network.

Investopedia has reached out to EchoStar for comment. 

With today’s gains, shares of EchoStar moved into positive territory year-to-date.