SpaceX will be one of the most sought-after initial public offerings (IPOs) in Wall Street’s history. However, with a valuation expected at close to $2 trillion, retail investors may struggle to buy in early enough to capture meaningful upside. That makes EchoStar (SATS 3.30%) an unusual way to get exposure to SpaceX before the rocket and satellite company starts selling stock.

EchoStar agreed to sell 65 megahertz of wireless spectrum to SpaceX, providing support for SpaceX’s Starlink to offer direct-to-device service (connecting regular phones directly to satellites). The deal was first valued at about $17 billion, but amended terms could lift the total to about $20 billion, including up to $11 billion in SpaceX stock valued at $212 per share.

In May 2026, the FCC approved EchoStar’s broader $40 billion spectrum sale to SpaceX and AT&T. These regulatory approvals have brought EchoStar closer to receiving cash and SpaceX stock.

EchoStar’s SpaceX stake is changing the story

EchoStar is not a clean alternative to SpaceX. The company’s legacy satellite TV business remains under pressure, with pay-TV subscribers declining by about 366,000 in the first quarter of fiscal 2026 (ending March 31, 2026). However, EchoStar has also reduced its net loss and improved its operating income before depreciation and amortization year over year. These improvements are giving investors a reason to look beyond the shrinking pay-TV business toward its spectrum proceeds and the SpaceX equity stake.

EchoStar

Today’s Change

(-3.30%) $-4.24

Current Price

$124.20

The upside now depends not only on its core business, but also on the value of its SpaceX stock, the cash it receives from spectrum sales, how much debt it can repay, and how much money is left after taxes and costs associated with shutting down parts of its own wireless network. Barron’s estimates the SpaceX stake could be worth about $31 billion if SpaceX lists at a $1.75 trillion valuation.

EchoStar is affected by weak legacy businesses and execution risk. Yet it is still a high-risk, high-reward way to gain exposure to SpaceX before the IPO.