AT&T Inc. (NYSE:T) is betting big on the future benefits of owning wireless airwaves...agreeing to acquire Straight Path Communications Inc. (STRP) — which owns a range of licenses for fixed and mobile wireless spectrum in the United States — for a total of $1.6 billion. The final price tag of $95.63 per STRP share represents a massive 162% premium over the stock’s Friday closing price of $36.48.

Written by StockNews.com

The good news is, AT&T is funding the acquisition by using 100% stock. The company commented via press release:

The acquisition will support AT&T’s leadership in 5G, which will accelerate the delivery of new experiences for consumers and businesses like virtual and augmented reality, telemedicine, autonomous cars, smart cities and more.

Bloomberg notes that the move could be a big IoT [Internet of Things] play for AT&T:

Straight Path calls itself a leader in providing high-frequency airwaves for carrying traffic that will grow as the so-called Internet of Things blossoms, linking everything from automobiles to garage doors and medical equipment. The Glen Allen, Virginia-based company says its airwaves offer a cheaper alternative to the fiber lines that typically carry mobile traffic to and from the wired network.

...Year-to-date, T has declined -2.64%, versus a 5.71% rise in the benchmark S&P 500 index during the same period.

T currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #1 of 32 stocks in the Telecom – Domestic category.