Ramping up
The FCC has finally given the green light for SpaceX’s purchase of EchoStar’s spectrum (all 65 MHz). This is welcome news as we did not necessarily anticipate that this would happen ahead of the IPO.
In addition, the FCC imposed a $2.4B escrow on EchoStar for potential Tower lease termination claims. $2.4B was in line with our base case and now becomes the max. More importantly this removes yet another overhang.
All these catalysts are now linking up on the same time frame, as the SpaceX news flow also ramps up (we already saw the Claude announcement – expect more).
Maximum attention, all at once – which is what we want.
And this is happening with the short interest looking like this:
Strategy and target levels
We have updated the excel for the revised lease termination costs and included a small module where you can play around with target levels.
On the assumptions below, we think >$175/share is a reasonable target and a level at which it makes sense to start taking money off …