EchoStar jumps on report SpaceX plans IPO filing as early as this week
EchoStar jumped early Wednesday on a fresh report about the supposedly imminent IPO filing from Tesla CEO Elon Musk’s commercial space behemoth, SpaceX.
The satellite stock, which was added to the S&P 500 on Monday, is in line to get a hefty chunk of SpaceX equity in exchange for the valuable spectrum rights it sold to Musk’s company.
EchoStar is set to collect roughly $20 billion on the deal, with as much as $11 billion to be paid in SpaceX stock.
The prospect of EchoStar potentially providing backdoor access to investing in SpaceX has attracted the attention of traders, and helps explain why the shares are up more than 300% over the last 12 months.
But as we’ve mentioned before, EchoStar doesn’t exactly own the shares yet, as the spectrum transactions remain pending. So, while the stock is up and the SpaceX IPO appears on track, as the old saying goes, don’t count your satellite spectrum for pre-public offering equity chickens before they’ve hatched.
EchoStar is set to collect roughly $20 billion on the deal, with as much as $11 billion to be paid in SpaceX stock.
The prospect of EchoStar potentially providing backdoor access to investing in SpaceX has attracted the attention of traders, and helps explain why the shares are up more than 300% over the last 12 months.
But as we’ve mentioned before, EchoStar doesn’t exactly own the shares yet, as the spectrum transactions remain pending. So, while the stock is up and the SpaceX IPO appears on track, as the old saying goes, don’t count your satellite spectrum for pre-public offering equity chickens before they’ve hatched.
