U.S. wireless carrier AT&T said on Monday it would buy Straight Path Communications, a holder of licenses to wireless spectrum, for $1.25 billion. Roselle Chen reports.
AT&T is buying Straight Path Communications for $1.25 billion. That's $95.63 per share, a premium of more than 160 percent to Straight Path's Friday close, all paid in AT&T stock. Shares of Straight Path shot up on the news. With Straight Path, AT&T is getting a massive portfolio of wireless spectrum licenses used in mobile communications. Analysts at 24/7 Wall Street say the licenses will help AT&T better compete with Verizon and Sprint. Next step - the Federal Communications Commission will reveal the deal. It is expected to close within 12 months.