Verizon Just Won A Bidding War With AT&T

The bidding war between AT&T and Verizon Communications is finally over. Verizon has announced that it will be buying Straight Path Communications, a wireless licenses company, for around $3.1 billion.

AT&T had announced a month ago that it would be buying the company for $1.6 billion. The telecom company has declined to match Verizon’s offer and Verizon will be paying a $38 million termination fee between the two companies on behalf of Straight Path.

The two companies had been at war to get Straight Path, who holds spectrum licenses which both Verizon and AT&T can use to expand services. This includes a faster 5G service.

After news revealed that AT&T was out of the race, Straight Path shares dropped 20% before the market opened on Thursday.

In the deal, Verizon will be paying $184 per share for Straight Path, which is a premium of 400% compared to its $38.48 closing price when AT&T had made its bid last month.

Verizon and Straight path expect the deal to close within the next nine months.

Disclaimer: We have no position in Verizon Communications Inc. (NYSE: VZ) nor Straight Path Communications Inc. (NYSE: STRP) and have not been compensated for this article.