Verizon Communications outbid AT&T to acquire Straight Path Communications, offering $184 per share, 92 percent more than the $95.63 per share deal that AT&T secured in April. AT&T did not increase their original offer, although they had the opportunity to counter Verizon’s bid.
Straight Path holds 28 and 39 GHz spectrum that Verizon intends to use for 5G services. Straight Path’s 39 GHz licenses span the entire U.S., and their 28 GHz licenses cover major markets.
Verizon’s offer represents a total value of $3.1 billion, which will be consummated in an all-stock transaction. The deal requires FCC review and is expected to close within nine months.
Hans Vestberg, executive vice president and president of global network and technology at Verizon — and formerly the CEO of Ericsson — said, “Verizon now has all of the pieces in place to quickly accelerate the deployment of 5G. Combined with our recent transactions with Corning Incorporated, XO Communications and Prysmian Group, this is another step to build the next-generation network for our customers.”