News Worms
News Worms

AT&T to boost 5G coverage by buying telecom for $1.25 billion

AT&T to boost 5G coverage by buying telecom for $1.25 billion

With the Straight Path deal, he said AT&T is "future-proofing their spectrum portfolio for the eventual rise of 5G". (NYSE:STRP) shares gained 3.52% to $36.48 on Friday. In February, AT&T and Nokia demonstrated how they could deliver DirecTV NOW over a fixed wireless 5G connection using 39 GHZ mmWave (millimeter wave) technology, according to AT&T.

AT&T is set to pick up 868 spectrum licenses in the 28 GHz and 39 GHz bands it plans to use for upcoming 5G services in $1.6B deal.

The deal is expected to close sometime in the next 12 months.

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AT&T has announced a deal to buy one of the largest holders of spectrum earmarked for 5G in the United States for $1.6 billion.

The FCC fined Straight Path $100 million in January for failure to deploy wireless services as required by the FCC's licensing policy. Straight Path's primary assets are spectrum licenses in bands suitable for 5G deployment. If it doesn't, the company would have to fork over an additional $85 million or relinquish those airwaves back to the agency.

AT&T revealed today that it purchased Straight Path Communications, adding a substantial amount of 5G spectrum to its growing arsenal.

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Shares of Straight Path soared to as high as $92 following the announcement, their highest price ever.

The transaction has a total value of $1.6 billion which includes liabilities and amounts to be remitted to the FCC per the terms of Straight Path's January 2017 consent decree. As it stands, the deal has already been approved by both companies' boards of directors and has the support of Straight Path's majority shareholder, Howard Jonas.

The company declined to comment beyond the press release.

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Evercore advised Straight Path on the deal and Weil, Gotshal & Manges LLP provided legal counsel.


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