US EditionMDA Space caught off guard by EchoStar’s deal cancellation, CEO says
EchoStar sold its spectrum licenses to SpaceX for $17 billion, ending a $1.3 billion contract with MDA Space Ltd., impacting satellite internet network development plans.
- On Monday, EchoStar Corp. terminated its agreement and announced it will sell its AWS-4 and H-block spectrum licences to SpaceX for about US$17 billion, cancelling the recent contract with MDA Space Ltd.
- The Aug. 1 deal envisioned MDA Space Ltd. as prime contractor for EchoStar's low Earth orbit satellite constellation, valued at about US$1.3 billion with potential to grow to US$2.5 billion.
- On the Toronto Stock Exchange MDA shares fell nearly 20 per cent to about C$35.23 and $35.25, with chief executive Mike Greenley calling the cancellation very sudden and drastic.
- EchoStar's about-face means MDA Space Ltd. loses its role as primary supplier for EchoStar's LEO constellation, but CEO Mike Greenley said they are negotiating with other firms while EchoStar enables customers to access Starlink Direct to Cell.
- Amid rising geopolitical tensions, MDA Space Ltd. executives said competitive pressure intensifies as SpaceX advances satellite-based internet to smartphones.
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MDA Space's action fell by almost 20% on Monday, at the beginning of the session, following EchoStar's cancellation of a contract entered into earlier this year with the Canadian company.
·Montreal, Canada
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Winnipeg Free Press+16 Reposted by 16 other sources
MDA Space shares drop after EchoStar cancels satellite constellation contract
Breaking News, Sports, Manitoba, Canada
·Winnipeg, Canada
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Total News Sources19
Leaning Left12Leaning Right1Center2Last UpdatedBias Distribution80% Left
Bias Distribution
- 80% of the sources lean Left
80% Left
L 80%
13%
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