EchoStar Corp. (NASDAQ:SATS) saw its stock skyrocket by 45% after former President Donald Trump reportedly stepped in to mediate a contentious standoff between the company and the Federal Communications Commission (FCC) over high-value spectrum licenses.
According to Bloomberg, Trump intervened in an escalating conflict between EchoStar Chairman Charlie Ergen and FCC Commissioner Brendan Carr. The former president expressed concern about the potential collapse of a major U.S. telecommunications player, warning that such an event could send unsettling signals to the broader business community.
The dispute centers on the FCC’s investigation, launched in May, into whether EchoStar has met regulatory obligations tied to its wireless and satellite spectrum holdings. The agency warned the company that failure to act—specifically by selling off certain spectrum assets—could result in forfeiture of its licenses.
Tensions appeared to intensify last week when Ergen met with Carr at FCC headquarters, where Carr reportedly urged EchoStar to begin divesting spectrum or risk losing key assets. The very next day, Ergen met Trump at the White House, prompting the president to bring Carr into the Oval Office for further discussion.
Amid the regulatory pressure, EchoStar has reportedly missed bond coupon payments and floated the possibility of filing for bankruptcy, citing the FCC’s actions as paralyzing its ability to proceed with plans for a 5G network rollout.
The developments sparked a rally in EchoStar’s bond market as well. Its 10.75% bonds due in 2029 climbed 5.4 cents to 108.5 cents on the dollar—making them among the top gainers in Friday’s U.S. high-yield debt trading.
Sources also indicated that the high-level meetings included conversations about Ergen’s political contributions, as well as whether DISH Network—EchoStar’s former satellite TV division—continues to broadcast conservative-leaning outlets like Newsmax.