Verizon beats out AT&T in a $3.1 billion bidding war for Straight Path Communications
Getty/Drew Angerer
Lowell McAdam, chairman and CEO of Verizon Communications
Straight Path Communications said it agreed to be bought by No.1 US wireless carrier Verizon Communications for an enterprise value of about $3.1 billion.
The $184 per share all-stock offer represents a discount of 17.8 percent to Straight Path’s close on Wednesday. The stock has surged nearly five-fold since April 7, a day before the company first received a takeover bid from AT&T.
AT&T and Verizon had been locked in a bidding war over Straight Path since AT&T’s original bid to buy the company for $1.8 billion.
Straight Path’s ownership of 5G networks is key for both AT&T and Verizon in their push to move to faster networks. The firm is the third-largest owner of spectrum licenses that could be used for 5G, according to Bloomberg.
Verizon will pay, on behalf of Straight Path, a termination fee of $38 million to AT&T, the company said.
Following the announcement, Verizon was up 0.2% in pre-market trading as of 7:55 a.m. ET.
Read more stories on Business Insider, Malaysian edition of the world’s fastest-growing business and technology news website.
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