SpaceX is exploring a potential acquisition of T-Mobile as it aggressively expands its newly public Starlink division into a full wireless network provider. TD Cowen analyst Gregory Williams issued a research note Thursday naming T-Mobile the “clear choice” for a buyout if the aerospace company decides to bypass wholesale agreements and own the infrastructure directly.
This pivot follows the highly anticipated SpaceX Initial Public Offering (IPO). Valuations are now strictly tied to Starlink, which generated $11.4 billion of the company’s total $14 billion revenue in 2025. Securing terrestrial telecom networks is a strategic requirement to maintain that momentum against legacy carriers.
Williams outlined that SpaceX could execute the purchase by issuing and selling additional stock, utilizing its post-IPO market cap without severely diluting existing shareholders. The space company already laid the groundwork for this rivalry in its recent IPO filings, explicitly framing Starlink Mobile as a direct competitor to Verizon and AT&T.
The two companies possess an established operational history. SpaceX and T-Mobile previously formed a partnership to test direct-to-smartphone cellular connectivity using Starlink satellites. If a T-Mobile deal falls through, the TD Cowen note suggests cable giants Comcast and Charter Communications remain secondary targets due to their existing network footprints.
Why Starlink Needs Direct Owner Economics to Scale
Transitioning from network partnerships to direct owner economics allows SpaceX to capture the entire profit margin of its connectivity services. Relying on competitors for backend terrestrial support limits Starlink Mobile’s pricing power and infrastructure control in dense urban environments.
By acquiring T-Mobile outright, SpaceX internalizes the necessary spectrum and ground operations. This shifts the company from a satellite internet provider into a vertically integrated global telecom operator, directly threatening the market share of AT&T and Verizon. The inclusion of Comcast and Charter Communications as secondary targets indicates SpaceX intends to secure legacy broadband and wireless infrastructure to supplement its orbital network.