EchoStar records $16.5B impairment charge as it moves to scale back 5G network plans
The post EchoStar records $16.5B impairment charge as it moves to scale back 5G network plans appeared on BitcoinEthereumNews.com.
EchoStar Corp has taken a non-cash impairment charge of $16.5 billion as revealed in its third-quarter earnings. The satellite and telecommunication firm is moving to decommission parts of its 5G network infrastructure. Alongside the charge, EchoStar agreed to sell additional spectrum licenses to SpaceX for $2.6 billion. Based on the earnings release by EchoStar, some of the 5G will no longer be usable after recent spectrum sales to AT&T and SpaceX. The satellite company revealed that a third-party valuation and management review company assessed and determined that the value of some of its spectrum assets was overvalued under the previous accounting baseline. EchoStar sells additional spectrum to SpaceX for $2.6 billion According to EchoStar’s Q3 financial release, the sale of additional licenses to SpaceX, valued at approximately $2.6 billion, included an unpaired AWS-3 license in addition to the license included in the September agreement, which was valued at $17 billion. The satellite and telecommunication firm acknowledged that it has now amended the September deal to include more licenses. 🚨 SPACEX BUYS THE SKY – $2.6B AT A TIME SpaceX just dropped $2.6 billion on EchoStar’s AWS-3 spectrum rights – prime wireless real estate across the U.S. The move expands Starlink’s reach and, more quietly, Elon’s chokehold on the future of global connectivity. Internet… https://t.co/5N6w4GR6WU pic.twitter.com/t0dIy6ziqW — Mario Nawfal (@MarioNawfal) November 6, 2025 Echostar stock rallied to $73.03, representing a 1% growth after the announcement, before consolidating at $71.18, representing a 0.16% drop on the daily chart. So far, the stock has gained 212.12% year-to-date, with a year-to-date range of $ 14.90 to $85.37. The firm has been restructuring its satellite business to narrow its scope in wireless networks. EchoStar noted that the latest non-cash impairment charge is pending regulatory approval. The satellite and telecommunications firm entered the mobile network market…
Filed under: News - @ November 6, 2025 6:32 pm