Verizon wins bidding war with AT&T for straight path

Verizon Communications is buying Straight Path Communications for about $3.1 billion, ending a bidding war with AT&T over the wireless licenses company.

The all-stock deal was announced Thursday, one month after AT&T said that it would buy Straight Path for $1.6 billion. AT&T is declining to match that offer, and Verizon will pay a $38 million termination fee to AT&T on behalf of Straight Path.

Straight Path, based in Glen Allen, Virginia, holds spectrum licenses which the telecom companies can use to expand services, including faster 5G service.

Verizon will pay $184 per share, a 400 percent premium to its closing price just before AT&T made its bid in April.