SpaceX-xAI Deal ‘Muddies the Waters’ for EchoStar: Analysts
A SpaceX facility in Boca Chica Beach, Texas.
Photographer: Brandon Bell/Getty ImagesA merger between SpaceX and xAI could create too much uncertainty for EchoStar Corp., according to Wall Street.
SpaceX is set to acquire at least $19.6 billion worth of spectrum from EchoStar in exchange for cash and stock. But the value of that stake — and its effect on EchoStar shares — are in question following news that CEO Elon Musk is merging the company with one of his other ventures. A tieup with xAI is said to proceed to create a $1.25 trillion company, according to a company memo.