Yahoo Finance AT&T Makes Major Acquisition for the Future, While Verizon Looks On
NEW YORK, NY / ACCESSWIRE / April 11, 2017 / The announcement of AT&T's major acquisition sets the stage for a new form of wireless service that will also be used for the Internet of Things applications. Verizon investors did not seem fazed by the purchase.
RDI Initiates Coverage on:
AT&T Inc. https://ub.rdinvesting.com/news/?ticker=T
Verizon Communications Inc. https://ub.rdinvesting.com/news/?ticker=VZ
AT&T dropped 0.52% to close at $40.38 on Monday. The stock traded in a narrow range between $40.31 and $40.68 on a volume of 18.21 million shares traded. The big announcement from the company was the acquisition of Straight Path Communications for $1.6 billion. The actual compensation to Straight Path shareholders will be close to $1.25 billion, as Straight Path has some outstanding issues with the FCC totaling about $35 million. The final deal is expected to close within the next 12 months pending FCC approval. AT&T is also awaiting approval on its $85 billion Time Warner deal announced last October.
The reason for the Straight Path purchase is to prepare the company for moving forward into what is known as millimeter wave band, bandwidth between 28 GHz and 39 GHz. The future of mobile communications is in the 5G bandwidth, and initial AT&T applications will be applied to fixed locations or devices with connections to mobile devices to come later.
Access RDI's AT&T Research Report at:
https://ub.rdinvesting.com/news/?ticker=T
Verizon dipped 0.25% to close at $48.54 on Monday. The stock traded in a range between $48.45 and $48.88 on volume of 10.86 million shares traded. The stock saw a drop after the news of the AT&T purchase of Straight Path Communications was announced. Verizon's stock was not affected much by the acquisition. Verizon previously gained similar licenses when it spent $1.8 billion to purchase fiber outfit company XO Holdings.
Access RDI's Verizon Research Report at:
https://ub.rdinvesting.com/news/?ticker=VZ
Our Actionable Research on AT&T Inc. (NYSE:T) and Verizon Communications Inc. (NYSE:VZ) can be downloaded free of charge at Research Driven Investing.
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