Chip stocks fall with Nvidia after data center rev disappointment
DALLAS - AT&T Inc. (NYSE:T) announced Tuesday it has agreed to purchase wireless spectrum licenses from EchoStar Corp. (NASDAQ:SATS) for approximately $23 billion in an all-cash transaction, subject to regulatory approvals and other closing conditions.
The acquisition includes approximately 30 MHz of nationwide 3.45 GHz mid-band spectrum and 20 MHz of nationwide 600 MHz low-band spectrum covering over 400 markets across the United States, according to a company press release.
AT&T plans to begin deploying the mid-band licenses, which are compatible with its existing 5G network, as soon as possible. The company stated it will support the deployment within its previously announced multi-year capital investment guidance.
As part of the agreement, AT&T and EchoStar will enhance their long-term wholesale network services arrangement, enabling EchoStar to operate as a hybrid mobile network operator providing wireless service under the Boost Mobile brand, with AT&T serving as the primary network services partner.
"This acquisition bolsters and expands our spectrum portfolio while enhancing customers’ 5G wireless and home internet experience in even more markets," said John Stankey, Chairman and CEO of AT&T.
The transaction is expected to close in mid-2026, pending regulatory approvals.
AT&T reiterated its full-year 2025 financial guidance and capital return plans, including $20 billion of share repurchase capacity during 2025-2027. Following the transaction closing, AT&T expects its net debt-to-adjusted EBITDA ratio to increase to approximately 3x, with plans to return to its target range of 2.5x within about three years.
The company does not anticipate material impact to adjusted earnings per share and free cash flow during the first 24 months after closing, with accretion to both metrics expected in the third year.
In other recent news, AT&T reported better-than-expected revenue results for the second quarter of 2025, primarily due to strong equipment sales. The company also exceeded EBITDA forecasts, with notable contributions from its wireline business, and benefited from tax savings that enhanced its financial performance. In light of these results, TD Cowen raised its price target for AT&T from $30 to $32, while maintaining a Hold rating on the stock. Additionally, AT&T announced the election of Kelly J. Grier to its Board of Directors, effective September 1, as Scott T. Ford retires after 13 years of service. Grier, formerly with Ernst & Young LLP, will join the Human Resources and Corporate Development and Finance Committees. AT&T also announced plans to dual list its common stock on NYSE Texas, effective August 1, 2025, while maintaining its primary listing on the New York Stock Exchange. These developments reflect AT&T’s ongoing strategic initiatives and financial performance.
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