AT&T announced on Monday that it would buy Straight Path Communications, a holder of licenses to wireless spectrum, for $1.25 billion in an all-stock deal as it aims to accumulate the airwaves it needs for a next generation network.
The network is widely considered to be a multibillion-dollar opportunity, and wireless carriers do not have many options in terms of acquisition targets that would give them the right type of spectrum for a next generation network. Straight Path is one of the largest holders of 28 GHz and 39 GHz millimeter wave spectrum used in mobile communications.
The No.2 US wireless carrier said it would offer $95.63 per share, a premium of 162.1 percent to Straight Path’s close on Friday. Straight Path’s shares leaped 150 percent to near $91 a share in afternoon trade, while AT&T’s shares were marginally lower.
Full Content: CNBC
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