Elon Musk just paid $17 billion for spectrum licenses, most experts call worthless, 100 times the going rate. On paper, the deal looks insane. Through Washington’s lens, it’s the smartest move SpaceX has ever made.
On Monday, Elon Musk’s SpaceX paid $17 billion for wireless spectrum licenses that most industry veterans would consider worthless. The price works out to $340 million per megahertz. Recent spectrum auctions have averaged between $0.10 and $3.00 per megahertz per capita.
SpaceX paid roughly 100 times the going rate; investors should ask why. On paper, the deal makes no sense.
The Fershman Journal
