AT&T to Acquire Straight Path for $1.6 Billion to Expand mmWave Bands for 5G

AT&T has announced the acquisition of Straight Path for $1.6 Billion Dollars. Straight Path is one of the largest holders of 28 GHz and 39 GHz millimeter wave spectrum. This acquisition complements the acquisition of FiberTower by AT&T in January and augments its holdings of mmWave spectrum.

With this acquisition AT&T will acquire 735 mmWave licenses in the 39 GHz band and 133 licenses in the 28 GHz band. These licenses cover the entire United States, including all of the top 40 markets. This acquisition will support AT&T's leadership in 5G, which will accelerate the delivery of new experiences for consumers and businesses like virtual and augmented reality, telemedicine, autonomous cars, smart cities and more.

The transaction has a total value of $1.6 billion which includes liabilities and amounts to be remitted to the FCC per the terms of Straight Path's January 2017 consent decree. Straight Path shareholders will receive $1.25 billion, or $95.63 per share, which will be paid using AT&T stock.