US, European telecom stocks slide as SpaceX spectrum deal rattles sector
SPY•US and European telecom stocks fell after SpaceX agreed to acquire Grain Management’s nationwide 800 MHz spectrum portfolio in a deal reportedly worth about $8 billion. US carriers fell 5% to 6% in premarket trading, while European tower operators rose 5% to 6%.
1. Carrier shares fall
T-Mobile US, Verizon and AT&T fell between 5% and 6% in premarket trading. The STOXX Europe 600 Telecommunications index dropped 3.3% to its lowest level since February; Deutsche Telekom fell 8%, Vodafone dropped 4.5%, Orange lost 3.4% and Telefónica slipped 3.3%.
2. SpaceX spectrum deal
SpaceX agreed to acquire private-equity firm Grain Management’s nationwide 800 MHz spectrum portfolio, bolstering its ambitions in satellite-to-cellular connectivity. The companies did not share financial terms; the deal was reportedly valued at about $8 billion and remains subject to regulatory approval. Morgan Stanley analysts said the transaction signaled SpaceX could become a more aggressive spectrum buyer, with any threat to established carriers likely to materialize gradually, starting in rural markets.
3. Tower stocks advance
American Tower, Crown Castle and SBA Communications rose between 5% and 6%, bucking the wider telecom selloff. Morgan Stanley called the deal “incrementally constructive” for tower operators, noting satellite networks could still require towers, rooftops and small cells.
