EchoStar Corporation (NASDAQ:SATS) shares are trading higher Monday following reports indicating President Donald Trump stepped in to mediate a high-stakes spectrum dispute between the company and the Federal Communications Commission (FCC).
What To Know: The stock movement came after it was revealed that Trump met with EchoStar President Charlie Ergen and FCC Chairman Brendan Carr in the Oval Office to push for a resolution regarding the company's threatened wireless spectrum licenses, according to Bloomberg.
The FCC had launched an investigation in May into whether EchoStar was fulfilling its obligations to utilize valuable spectrum assets for wireless and satellite communications. Facing mounting pressure from regulators and financial strain, including missed bond payments and discussions of potential bankruptcy, Ergen sought direct talks with Carr. After initial attempts to reach him were unsuccessful, the two finally met Wednesday. Carr reportedly told Ergen that EchoStar risked losing its licenses unless it began selling portions of its underutilized spectrum.
Trump, concerned about the broader implications of a major American company collapsing, called Carr into the Oval Office during the meeting and urged both parties to reach an agreement.
While EchoStar has not yet made any public statements, the White House has also declined to comment on specifics.
EchoStar Price Action: EchoStar shares were up 48.5% at $25.01 at the time of writing, according to Benzinga Pro.
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