AT&T outbid for Straight Path by mystery firm rumored to be Verizon
Immediately after AT&T announced its bid, which works out to $95.63 a share, analysts started naming other carriers that they felt were interested in Straight Path too. As it turns out, at least one other company was interested enough to lob in a higher $1.8 billion bid today for the company. The price of the unsolicited offer is $104.64 a share. It is hard to believe, but before AT&T started all of this commotion, Straight Path was trading at $36.48.
One of the names mentioned as a possible buyer by analysts was Verizon. Straight Path's spectrum is considered high frequency, which means that it has a limited range and doesn't penetrate buildings too well. As a result, some industry analysts say that a company that owns a wired network, like Verizon does (in addition to its wireless network), would benefit the most from purchasing the company. Reuters is reporting that the mystery bidder, known only as a "multi-national telecommunications company" is indeed Verizon.
So here is where things stand. AT&T now has five business days to top the new bid. If AT&T walks away, it will receive a $38 million break up free from Straight Path. Not bad for giving up on the acquisition of a company that was more suited for Verizon to buy anyway.