Why Straight Path Communications Inc. Stock Skyrocketed 150% Today

AT and T

AT and T

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.

Mohan Bhagwat seeks nationwide ban on cow slaughter, says violence 'defames' cause
Chief Mohan Bhagwat today proposed the idea of a nationwide ban on cow slaughter. "It is impossible", he said. At least four people have been arrested so far and the police are looking for 10 more alleged cow vigilantes.

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.

Recommended News

  • US, Canada and Mexico confirm joint 2026 World Cup hosting bid

    US, Canada and Mexico confirm joint 2026 World Cup hosting bid

    Mexico will push to kick off the 32-day tournament at the Azteca Stadium in Mexico City, which hosted the final in 1970 and 1986. All Iraq's "home" games in 2018 World Cup qualifying have been played in neutral Iran or Malaysia.
    Jon Jones as confident as ever while serving latest UFC ban

    Jon Jones as confident as ever while serving latest UFC ban

    IF UFC 210 is going to be half as exciting as all the controversy leading up to today's event, then we are in for one hell of a card.

    Netanyahu to AIPAC: 'US & Israel will stand shoulder to shoulder' together

    Pence, who was accompanied by his wife Karen, stressed that "President Trump has made it clear America stands alongside Israel". But he repeated his demand that the Palestinians recognise Israel as a Jewish state, something they have refused to do.
  • Romo's honorary Mav day turns spectacle for final home game

    That way you won't say so-and-so gained 15 yards, when it was somebody else, something I have often been guilty of. Romo will reportedly do everything except play in the game... at least that's the plan.

    Wenger avoids future talk after Palace loss

    Milivojevic made no mistake with the spot-kick as the Serbia global tucked away his first goal since joining Palace in January. After a shock defeat to Palace , Craig Burley lambastes Arsenal's ownership for having let Arsene Wenger remain in power.

    Le Pen: I will quit office if French reject eurozone exit

    In January Le Pen visited Trump s headquarters but left without meeting the United States president-elect or any of his staff. Le Pen did not have any planned meetings with Kremlin representatives or government officials during her Moscow visit.
  • The Last Jedi Rumor Round Up

    The Last Jedi Rumor Round Up

    We know we're getting a new trailer for Star Wars: The Last Jedi there, so this is unlikely to be what they're talking about. That must be why they're comfortable making a big Star Wars announcement together.

    Trump, Xi showdown fails to materialize at Mar-a-Lago

    Trump also "noted the importance of protecting human rights and other values deeply held by Americans", the statement added. Trump accepted Xi's invitation to visit China this year, but no date has been set, Tillerson said.

    A Trump national security adviser tapped as Singapore envoy

    McFarland's departure, due to take effect in two weeks, is a demonstration of yet another way that Flynn's replacement, H.R. As noted by CNN, McFarland's position as the top deputy national security adviser had been "tenuous" for a while.
  • Reds set for top four - Ibra

    Reds set for top four - Ibra

    Any Sunderland hope disappeared with Larsson's red card and 46 seconds after the break Mkhitaryan fired past Pickford. Decisions go against you and at the moment, these decisions are going against us.
    Missed call helps UNC in final minute of NCAA title game

    Missed call helps UNC in final minute of NCAA title game

    North Carolina's Roy Williams is in his ninth Final Four and fourth championship game, two of which were titles in 2005 and '09. However, too many turnovers burned Gonzaga , including one by Przemek Karnowski with nine seconds left in the game.

    Flynn made $1.3 million for lobbying, speeches, other work

    The Clinton-led State Department was among nine US government agencies that had to approve the purchase of Uranium One. Schiff caught the White House red-handed in their cover-up.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.