Verizon and AT&T in Bidding War for Straight Path Communications ?

At stake is the valuable spectrum that Straight Path Communications owns.

Verizon(VZ)  is possibly firing a shot across the bow of AT&T (T).  As reported a couple of days ago AT&T had made a bid to acquire Straight Path Communications for about 1.6 Billion. It now is being rumored that Verizon also intends to make a bid for Straight Path.

At stake is the valuable spectrum that Straight Path Communications (STRP)  owns. Straight Path holds a large amount of Millimeter Wave Spectrum that At&T and Verizon will need to build out their new 5 G networks. 5G promises to carry vastly larger amounts of data at up to 100 times the speed of current 4G networks. This will be a game changer for the carriers as they will them be able to deliver very high speed internet and related services in competition to local internet providers. It will also have huge implications for things such as driver-less (autonomous) vehicles and the coming IoT    ( Internet of Things) revolution. Both AT&T and Verizon are engaged in 5G trials and in a heated race to be the first to deliver 5G.

Verizon has declined to comment on the matter.

It is my opinion that AT&T has been the clear winner in the acquisitions race lately and seems to have a  more disciplined approach on where it is headed. While I hold both stocks I am of the opinion AT&T will be the long term winner.

Thoughts or Opinions ? We would love to hear from you !

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AT&T to Acquire Straight Path Communications

The all stock deal is set to be valued at 1.6 Billion dollars

In a surprise announcement AT&T (T) has announced it is acquiring Straight Path Communications Inc. (STRP) . The all stock deal is set to be valued at 1.6 Billion dollars

Straight Path Communications is engaged in the leasing and sub leasing of Wireless Spectrum and Broadband telecommunication services.

Straight Path is a Private Company and holds 838 licenses of 39 gigahertz bands. The company is based out of Glenn Allen Virginia and was founded in 2013.

It appears the move was a play for it’s 5G Spectrum roll out.