AT&T is looking to continue bolstering its millimeter wave spectrum holdings, announcing a deal to acquire Straight Path Communications for $1.6 billion. But it's also still subject to FCC review, so Straight Path now anticipates the transaction will close within 12 months.
The Dallas-based telecommunications giant said it will buy Straight Path for $95.63 per share in an all-stock merger, whereby Straight Path shareholders will be paid with AT&T stock.
AT&T's acquisition of Straight Path's spectrum licenses is a pre-emptive move, in the firm's view, to solidify the company's 5G spectrum portfolio ahead of expanded 5G trials.
AT&T has confirmed plans to acquire Straight Path Communications Inc.in a deal worth a reported $1.6 billion. The licenses will cover the entire USA, including the top 40 markets. Straight Path shareholders will receive $1.25 billion.
The purchase gives AT&T 735 mmWave licenses in the 39GHz band and 133 licenses in the 28GHz band.
Between FiberTower and Straight Path, AT&T should have a similar amount of millimeter wave spectrum as Verizon if not more, Wells Fargo analyst Jennifer Fritzsche said in a client note.
AT&T will acquire Straight Path for $95.63 a share in an all-stock merger created to be a tax-free reorganization, according to a statement Monday.
Straight Path Communications Inc (NASDAQ:STRP) insider Zhouyue Pi sold 2,000 shares of the firm's stock in a transaction that occurred on Monday, April 10th.
The deal shows how wireless carriers may be increasingly willing to pay lofty prices for assets that they view as critical to 5G, which is expected to boast higher speeds and more capacity. (NYSE:STRP) and AT&T (NYSE:T) announced the signing of a definitive merger agreement under which AT&T is to acquire Straight Path for $95.63 per share in an all-stock merger meant to qualify as a tax-free reorganization. "This spectrum is for fixed wireless and is the basis of Verizon's 5G strategy". Straight Path owns approximately 195bn MHz-POPs of 28GHz (20MHz POPs) and 39GHz (175m MHz-POPs) spectrum.