Verizon outbids AT&T in acquisition of Straight Path Comm

Chip making company Verizon has reportedly outbid rival AT&T for the chunk of frequencies — or spectrum — it will use to deploy its 5G network.

It spent $3.1 billion on Straight Path Communications, a wireless holding company, and agreed to pay an additional $38 million if the deal doesn’t go through.

Straight Path, which acquired — but failed to make use of — spectrum it purchased 15 years ago, was expected to close a deal with AT&T.

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Ma Bell of AT&T announced a bid of $1.6 billion for Straight Path in April, but folded its hand when Verizon offered more.

Verizon ponied up for good reason. Straight Path maintains a valuable portfolio of millimeter wave spectrum — frequencies with narrower-than-average lengths ideal for 5G deployment.

And it has them in a lot of places, including all of the top 40 markets in the U.S.

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