Yet Another Value Podcast Yummy Century Egg's Guowei Zhang Echostar follow up $SATS
Sep 8, 2025
In this discussion, Guowei Zhang, a writer at Yummy Century Stocks, gives insights into the $23 billion spectrum deal between AT&T and EchoStar. He examines the competitive dynamics in telecommunications, including challenges for cable companies and the potential impact of regulatory decisions. The conversation also delves into mergers and acquisitions in broadcasting and the psychological hurdles faced by value investors, offering lessons from personal experiences and broader market trends.
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AT&T's Big Spectrum Purchase Resets Value
- AT&T paid $22.7B for parts of EchoStar's spectrum, realizing about one-third of the portfolio's value.
- That sale marked a rapid and surprising monetization step for Charlie Ergen's spectrum hoard.
3.45GHz Fair, 600MHz Paid At A Premium
- The 3.45 GHz block was worth about $8B and AT&T paid roughly market price for it.
- AT&T paid a steep premium for 600 MHz, pushing market ranges to the high end.
Deal Changes FWA And Spectrum Dynamics
- AT&T signaled the 3.45 GHz will be used for fixed wireless access (FWA) and that the 600 MHz will take years to deploy.
- The market's spectrum valuation has effectively reset higher after the deal.