Shares of satellite and wireless communications company EchoStar (ECHO) ended the day almost 4% higher on Nov. 3 after reports emerged that SpaceX (SPCX) is considering a deal with Boost Mobile as a precursor to the launch of its own wireless service.
Any deal with Boost would be complicated, as it has network sharing agreements with legacy players such as AT&T (T) and T-Mobile US (TMUS). Interestingly, earlier this year, TD Cowen analyst Gregory Williams floated the idea of SpaceX acquiring T-Mobile US, considering their existing partnership. With that deal not coming to fruition, though, SpaceX appears to have moved on.
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Now, a deal to acquire EchoStar may be in the works, with SpaceX's potential partnership with Boost Mobile possibly serving as the first step in that process. However, no confirmation has been communicated by either company.
About EchoStar
Tracing its origins back to 1980, EchoStar describes itself as a global provider of satellite, wireless, video, and connectivity technologies. Historically, the company's operations have primarily spanned pay-TV, wireless services, and broadband and satellite services. However, the corporate structure has changed substantially in 2026. EchoStar's pay-TV operations and substantially all of its Other segment were deconsolidated from its financial statements as of June 30, 2026, following the Chapter 11 filings of certain DISH entities.
Valued at a market capitalization of $29.6 billion, ECHO stock is down 9% on a year-to-date (YTD) basis.
www.barchart.com Having said that, the proposition regarding a Boost Mobile partnership for SpaceX is clear, with the potential deal likely providing a boost to the latter's telecom ambitions. Let's take a closer look.
Readymade Access
EchoStar's wireless segment, which includes both Boost Mobile and Gen Mobile, has a subscriber base of about 7.2 million subscribers. Although this is much lower than the subscribers counts of some legacy players, it could be a solid base for SpaceX to build upon. Additionally, Boost has more than 3,000 stores across the country. That is useful for customer acquisition, handset distribution, and customer support.
With Boost, SpaceX could largely achieve its goal of satellite-to-phone connectivity in urban areas. This is because satellite-to-phone connectivity still faces limitations, particularly indoors and in areas with high user concentration. Conventional cellular networks are much better suited to delivering high-capacity service in those environments. By combining the two, SpaceX could develop a hybrid network that switches between satellite and terrestrial connectivity depending on availability.
Further, SpaceX has already dealt with EchoStar in the past. Recognizing that spectrum is a core requirement of any successful telecommunications business, the company entered into a major agreement to acquire EchoStar's AWS-4 and H-Block spectrum last year, which was subsequently expanded to include AWS-3 spectrum. The transaction is valued at a total consideration of about $20 billion.
Still, Boost has some major drawbacks. While AT&T, T-Mobile, and Verizon (VZ) control their own radio access networks, spectrum deployments, capacity planning, and network investment, Boost depends on commercial agreements for much of the physical coverage it sells. Moreover, Boost parent EchoStar has been going through a tumultuous time, with some of its subsidiaries — including Hughes Satellite Systems — having filed for Chapter 11 bankruptcy to address debt obligations. Finally, EchoStar's financial position is shaky to say the least.
EchoStar Reports Earnings
For the second quarter of 2026, EchoStar reported a beat on earnings and a miss on revenues. Yet, digging deeper provided a grimmer picture. Revenue fell by 4% year-over-year (YOY) to $3.58 billion, with Pay-TV seeing a decline of nearly 9% in the same period. Two relevant segments for SpaceX — Wireless and Broadband and Satellite Services — also witnessed downturns of about 1% and nearly 7%, respectively. Meanwhile, EPS came in at $24.12, with a net income of $8.46 billion.
Much more recently, however, EchoStar reported Q3 results on Nov. 3, providing further insight as its business shifts. Revenue for the quarter fell to $1.13 billion from $3.61 billion in Q3 2025, reflecting the deconsolidation of subsidiaries. Meanwhile, earnings swung to $2.78 billion from a net loss of $12.78 billion during the same period last year. Diluted EPS came in at $7.97 per share.
Still, the subscriber count has continued to fall. EchoStar saw a net customer loss of 182,000 for its wireless business in Q3, adding questions amid the potential SpaceX acquisition rumors.
Overall, EchoStar ended Q3 with cash and cash equivalents of $13.44 billion.
What Do Analysts Think of ECHO Stock?
Shares of EchoStar are falling today after the Q3 earnings release on Nov. 3. However, Wall Street still has a consensus “Strong Buy" rating for ECHO stock, possibly because the company is a potential takeover candidate. Out of nine analysts covering the stock, 8 have a “Strong Buy” rating while one has a “Moderate Buy” rating. The mean target price of $137.88 denotes potential upside of roughly 39% from current levels.
www.barchart.com On the date of publication, Pathikrit Bose did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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