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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EchoStar Shuts Network Despite Heavy CapEx
- EchoStar is shutting down its terrestrial network and decommissioning substantial invested radio assets.
- That move implies cable operators declined to buy the network turnkey.
Remaining Spectrum Could Fund Near-Term Value
- After the AT&T sale, EchoStar holds ~$11–12B more of sellable spectrum outside AWS-4.
- Liquidation of those assets could meaningfully support a mid‑$50s share price.
AWS‑4 Is Valuable But FCC‑Constrained
- AWS‑4 (2 GHz) is the crown jewel worth ~$26–27B but is entangled with FCC build-out conditions.
- Future use will require FCC approval, limiting Ergen's unilateral options.