Elon Musk‘s Space Exploration Technologies Corp. (NASDAQ:SPCX) may be considering an acquisition of T-Mobile US Inc. (NASDAQ:TMUS) in a strategic move to expand into the wireless business, according to an analyst’s prediction.
TD Cowen analyst, Gregory Williams, suggested that T-Mobile could be the “clear choice” for SpaceX if it fails to secure a wholesale network deal or if it prefers to own a wireless business outright, reported Forbes. The analysis stems from SpaceX’s existing partnership with T-Mobile through its Starlink satellite internet business. As SpaceX seeks to expand Starlink into a broader wireless offering, T-Mobile could emerge as a potential acquisition target.
In its IPO filing, SpaceX estimated the addressable market for Starlink Mobile at $740 billion, hinting at plans to “expand our Starlink Mobile offering,” thereby positioning Starlink Mobile as a potential competitor to Verizon Communications Inc. (NYSE:VZ), AT&T Inc. (NYSE:T), and other providers.
According to a Financial Times report on Friday, SpaceX President Gwynne Shotwell told investors about the company’s plans to launch a Starlink retail product for U.S. consumers and build its own terrestrial mobile network.
Williams also suggested that SpaceX could consider acquiring AT&T or a cable TV company. The analyst said Comcast Corp. (NASDAQ:CMCSA) and Charter Communications could also be attractive acquisition targets for SpaceX because both have wholesale network agreements with Verizon.
SpaceX and T-Mobile did not immediately respond to Benzinga’s request for comments.
SpaceX’s Wireless Push
Earlier this year, when an X user asked Musk about “Starlink phone”, he responded that it was “not out of the question at some point,” adding that it would be “very different” from today’s smartphones and optimized for AI workloads. Days later, however, he clarified that SpaceX is “not developing a phone.”
In November, EchoStar Corp. (NASDAQ:SATS) said it would sell an additional $2.6 billion worth of U.S. wireless spectrum licenses to SpaceX in exchange for equity, expanding the companies’ previously announced $17 billion deal. The AWS-3 spectrum will support mobile and satellite communications, subject to regulatory approval.
This news also follows recent suggestions from Elon’s biographer, Walter Isaacson and investor Anthony Pompliano about a potential merger between Tesla Inc. (NASDAQ:TSLA) and SpaceX.
TMUS holds a growth rating of 28.43% and a quality rating of 34.69%, according to Benzinga’s Proprietary Edge Rankings. The Benzinga growth metric evaluates a stock’s historical earnings and revenue expansion across multiple timeframes, prioritizing both long-term trends and recent performance.
TMUS Price Action: On a year-to-date basis, TMUS declined 9.02%, as per Benzinga Pro data. On Thursday, it closed 0.43% higher at $181.57.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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