If it continues into the regular session the percentage change would be the largest in the history of Straight Path, already a volatile stock. While digging up streets to install fiber lines is expensive, time-consuming, and lends itself to regional monopolies, using wireless connections to get internet to the home has major promise.
The deal will be subject to approval from the Federal Communications Commission, and follows an investigation from the FCC into Straight Path which was concluded in January.
Straight Path CEO Davidi Jonas said publicly in January that Straight Path still holds 95% of the 39GHz licenses commercially available.
AT&T will acquire 735 mmWave licenses in the 39 GHz band and 133 licenses in the 28 GHz band. Straight Path was considered a "forced" seller of its licenses based on a consent decree with the FCC related to a violation of build-out and discontinuance rules.
In the press release announcing the deal, AT&T explained that Straight Path spectrum it has acquired as part of this deal covers the entire United States, further lending hand to the 5G push. In addition, Kerrisdale valued the company at about $200 million, less than half of the company's value before the acquisition.
No discrimination in name of caste, religion, colour: Rajnath
"We will have to agitate not only inside, but outside too", said Kharge questioning what action the government was going to take. But not satisfied with this, the Congress members started shouting slogans and again trooped near the Speaker's podium.
The second largest wireless carrier in the US said it was offering $95.62 per share, which represented a 162% premium over the close of Straight Path stock on Friday. The Company owns Straight Path Spectrum, Inc (Straight Path Spectrum), Straight Path Ventures, LLC (Straight Path Ventures), and Straight Path IP Group, Inc (Straight Path IP Group).
Straight Path stock (NYSE MKT: STRP) was up $53.38 to $89.86 per share.
The stock was able to keep return on assets at 107.64% in the trailing twelve month while Reuters data showed that industry's average stands at 0.42% and sector's optimum level is -7.60%.
The company declined to comment beyond the press release.
Evercore served as exclusive financial adviser to Straight Path. Weil, Gotshal & Manges LLP served as company counsel on the deal.