The logo of Verizon is seen at a retail store in San Diego, California April 21, 2016. (Photo: AP)
Verizon Communications Inc. (NYSE:VZ) has reached a deal to buy Straight Path Communications Inc (NYSEMKT:STRP) for an enterprise value of about $3.1 billion.
The No.1 U.S. wireless carrier will pay a termination fee of $38 million to AT&T on behalf of Straight Path, the company said.
The $184 per share all-stock offer represents a discount of 17.8% to Straight Path’s close on Wednesday.
UPDATE: Straight Path shares fell a whopping 45.68 points to 178.11, or 20.41%, by the closing bell Thursday.
The stock had previously gone gangbusters, adding nearly five times its starting value since April 7. That was one day before the company first received a takeover bid from AT&T INC (NYSE:ATT.CL).
