United States carriers are spending big bucks to acquire more wireless spectrum, especially with 5G on the horizon. T-Mobile recently won a bidding war for a large chunk of the 600Mhz spectrum, and AT&T was preparing to buy Straight Path Commutations last month. However, it turns out that Verizon will be buying Straight Path instead, after winning a bidding war against AT&T.
Straight Path Communications is a spectrum asset company, who owns licences for some of the 39GHz and 28GHz bands. The purchase totaled to $184 per share, or $3.1 billion altogether, and is expected to finalize within nine months (pending FCC approval). Straight Path announced on Monday that an unnamed company offered to buy it, which was only revealed today to be Verizon.
Verizon will also pay a termination fee of $38 million to AT&T, on behalf of Straight Path, due to the latter company terminating the previous deal. And you thought phone contract termination fees were expensive.
NEW YORK – To scale and accelerate deployment of next-generation broadband services throughout the United States, Verizon Communications Inc. (NYSE, Nasdaq: VZ) announced it has signed an agreement to acquire Straight Path Communications Inc. (NYSE MKT: STRP), a holder of millimeter wave spectrum configured for 5G wireless services.
Verizon will purchase Straight Path for $184.00 per share, or a total consideration of $3.1 billion, in an all-stock transaction. The transaction is anticipated to close within nine months, subject to FCC review.
Based in Glen Allen, Va., Straight Path holds millimeter wave spectrum configured for 5G services, including 39 GHz licenses that serve the entire country and 28 GHz assets in major markets.
“Verizon now has all of the pieces in place to quickly accelerate the deployment of 5G,” said Hans Vestberg, executive vice president and president of global network and technology at Verizon. “Combined with our recent transactions