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Verizon buys Straight Path for $3.1 bln

2017年 5月 12日 星期五 - 00:46

Verizon snapped up wireless spectrum holder Straight Path Communications in a $3.1 billion deal, trumping rival AT&T's and gaining an advantage in a race to build 5G networks. Fred Katayama reports.

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Verizon Communications is snapping up wireless spectrum holder Straight Path Communications for $3.1 billion. The all-stock deal is almost double that of AT&T's offer for the company in April. But Straight Path's shares plunged as news of the deal dashed investor hopes of a bidding war between the two largest U.S. wireless carriers. With Straight Path, Verizon gets a head start in setting up fifth-generation networks, or 5G. It hopes to use the technology to better compete with high-speed internet offerings from cable companies. Analysts at Jefferies said that the transaction "positions Verizon well ahead of peers." The deal is expected to close within nine months.

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Verizon buys Straight Path for $3.1 bln

2017年 5月 12日 星期五 - 00:46