Verizon to Buy Straight Path in $3.1B Deal

Industries Reuters

FILE PHOTO: The logo of Verizon is seen at a retail store in San Diego, California April 21, 2016. REUTERS/Mike Blake/File Photo (Copyright Reuters 2017)

Straight Path Communications said it agreed to be bought by No.1 U.S. wireless carrier Verizon Communications Inc for an enterprise value of about $3.1 billion.

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The $184 per share all-stock offer represents a discount of 17.8 percent to Straight Path's close on Wednesday. The stock has surged nearly five-fold since April 7, a day before the company first received a takeover bid from AT&T Inc.

Verizon will pay, on behalf of Straight Path, a termination fee of $38 million to AT&T, the company said.

(Reporting by Rishika Sadam in Bengaluru; Editing by Saumyadeb Chakrabarty)