Verizon to Acquire Straight Path for $3.1B in Stock
Thursday, May 11, 2017 | Comments

Straight Path Communications announced that it will sign a definitive merger agreement under which Verizon Communications will acquire Straight Path for $184 per share, reflecting an enterprise value of about $3.1 billion, in an all-stock transaction that is intended to qualify as a tax-free reorganization.

The boards of directors of both Straight Path and Verizon approved the transaction.

Last month, AT&T announced plans to acquire Straight Path for $1.6 billion, but last week, Straight Path said it received a higher offer. Straight Path will terminate the definitive agreement and plan of merger with AT&T. Verizon will pay a termination fee of $38 million to AT&T on behalf of Straight Path.

As previously announced, the Straight Path board of directors determined in good faith, after consultation with its financial advisors and outside legal advisors, that the transaction with Verizon constituted a superior proposal under the AT&T merger agreement. AT&T determined not to make new bids or proposals to Straight Path or to propose any amendments to its agreement with Straight Path.

The acquisition of Straight Path for $184 per share in Verizon stock implies a premium of 486 percent to the closing price of Straight Path common stock of $31.41 Jan. 11, the day before Straight Path announced its FCC settlement and strategic alternatives process, and 404 percent premium to the closing stock price of $36.48 on April 7, the business day prior to entry into the AT&T agreement.

Straight Path holds a nationwide portfolio of millimeter wave (mmWave) spectrum including 28 and 39 GHz licenses.

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