Verizon beats AT&T for Straight Path 5G spectrum

May 12, 2017 //By Jean-Pierre Joosting
Beating an earlier bid by AT&T for Straight Path Communications Inc., Verizon Communications Inc., has signed an agreement to acquire Straight Path Communications 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.

The battle between AT&T and Verizon has been over valuable spectrum that Straight Path Communications held but failed to use leading to an investigation by the U.S. Federal Communication Commission (FCC). Straight Path Communications settled with the FCC and put itself up for sale leading to a bidding war between AT&T and Verizon.

Straight Path Communications holds a chunk of millimeter wave spectrum, which is considered critical for future 5G wireless 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 with Corning Incorporated, XO Communications, and Prysmian Group, this is another step to build the next-generation network for our customers."

www.verizon.com

 

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