AT&T inks USD1.6bn deal to acquire Straight Path

11 Apr 2017

US telecoms giant AT&T Inc. has announced it is to purchase Virginia-based Straight Path Communications, which holds a nationwide portfolio of mmWave spectrum, including 39GHz and 28GHz licences. Under the terms of the deal, AT&T will acquire 735 mmWave licences in the 39GHz band and 133 licences in the 28GHz band, covering the entire United States, including ‘all of the top 40 markets’. The transaction is said to have a total value of USD1.6 billion, with Straight Path shareholders set to receive USD1.25 billion, or USD95.63 per share; this will be paid using AT&T stock. The transaction is subject to FCC review and is expected to close within twelve months.

AT&T said it expects the Straight Path deal to complement its January 2017 acquisition of San Francisco-based FiberTower Corporation and that company’s mmWave spectrum rights, with its latest purchase helping to ‘support the development of 5G technologies’.

United States, AT&T, AT&T Communications, Straight Path Communications