AT&T acquires Straight Path, with spectrum, for United States dollars 1.25 bln

11 April 2017, 08:58 | Andres Norman

AT&T to buy Straight Path Communications for $1.25 bln business Updated

AT and T

"This spectrum is for fixed wireless and is the basis of Verizon's 5G strategy".

With shares now trading just below $91 per share - which reflects some modest uncertainty surrounding the impending FCC review - Straight Path shareholders have a choice: You can either wait until the transaction closes to ensure you collect the full amount of the agreed acquisition price in AT&T shares through a tax-free transaction.

In the press release announcing the deal, AT&T explained that Straight Path spectrum it has acquired as part of this deal covers the entire United States, further lending hand to the 5G push.

In January, AT&T unveiled its 5G strategy for 2017, saying it would not wait for final standards for the technology to be complete to begin its "network evolution". Carriers typically use FiberTower's services for wireless backhaul.

Leaked Dodge Challenger SRT Demon Image Surfaces Online
High-performance engines often have higher compression ratios and thus need fuel with higher octane ratings to avoid knocking. That campaign will (mercifully) come to an end next week when the new Challenger breaks cover during the New York Auto Show.

North Korea says Syria airstrikes prove its nukes justified
North Korea fired a ballistic missile into the sea off the Korean Peninsula earlier this week, the latest in a series of recent test firings.

Davis Cup: Australia leads US 2-0 in quarterfinal
In the fifth set, the Americans broke Peers' serve to love and outplayed the Australians to clinch the match. Lets hopefully close it out tomorrow, ” world number 16 Kyrgios said on court after the win.

Straight Path, which was bought by AT&T was one of the largest holders of 28 and 39 gigahertz millimeter-wave spectrums - frequencies approved to power the fifth-generation of wireless services, or 5G. It expects that deal to close by next January.

Normally, a $1.6-billion telecom deal isn't something that's going to make major headlines.

The deal with AT&T is supported by Straight Path's majority shareholder, Howard Jonas, who has entered into a voting agreement with the carrier in support of the transaction. Globalstar was up 13 pct at $1.83 while Sprint Corp was up 3.8 percent at $8.69. The acquisition, expected to close within a year, gives AT&T access to Straight Path's. The company said at the time it was weighing its strategic. The remainder will settle Straight Path's liabilities with the FCC.

With debt included, the value of the deal comes to $1.6 billion.



Other News

Trending Now

South Africans protest Zuma as country downgraded to junk
Members of the ANC party's youth wing also gathered outside its headquarters at Luthuli House to shield it from protestors. He said the ANC was not against the anti-Zuma march. "This is the outcome of a government misbehaving", said Abedian.

Draft EU guidelines show both sides constructive on Brexit talks
The draft says the EU's overall objective is "to preserve its interests, those of its member states, its citizens and its businesses".

Not so silent night: Dallas emergency siren system hacked
You can monitor the City of Dallas on Twitter or Facebook and Dallas Office of Emergency Management on Twitter or Facebook. Locating the hacker, however, "is going to be a very long process if we do find out who actually did it", Vaz said.

N.Korea fires ballistic missile, United States says clock has now run out
It flew a distance of around 60 kilometers (37 miles) and flew as high as 189 kilometers (117 miles), South Korean officials said. The North Korea flag flutters next to concertina wire at the North Korean embassy in Kuala Lumpur, Malaysia March 9, 2017.

Joke's on Us: No April Fools' Giraffe Baby
Sarah Roffe, giraffe team manager at Chester Zoo , said: 'For a little while we could just see two spindly legs poking out. Around the time April the Giraffe passed the 15-month mark of her pregnancy, Toys "R" Us decided it had to act.

The Kushner-Bannon feud is about ideology - and Steve Bannon is losing
Yes, it helps that his father-in-law is the boss, though the White House has denied that nepotism plays a role. Recently, Bannon was removed from hisNational Security Council post by President Trump.

Nearly half of US adults infected with genital HPV
Paul Offit, professor of pediatrics and director of the Vaccine Education Center at the Children's Hospital of Philadelphia. Close to 40 percent of women had any type of HPV and 20 percent had a cancer-causing strain, the researchers reported .

Daniel Cormier calls out Jon Jones: 'We know he tried to cheat'
But like he said, that was the easiest fight of his career so if that was the easiest fight of your career then all right then. He is unclear who will fight for the title after UFC 210 , but has an idea of what he would like to have happen.

McConnell claims votes to bust Supreme Court filibuster
McConnell warned that the Democrats' filibuster could do something "truly detrimental to this body and to our country". Lamar Alexander, R-Tennessee, was equally vague when it came to saying if he would vote for the nuclear option.

Trump tells newspaper Obama aide might have broken the law
It is unclear, from the news accounts, whether the Russians were talking with these team members or simply talking about them. The president would not provide any evidence for the claim , which has been debunked by numerous intelligence officials .