Verizon Wins Straight Path for $3.1 Billion

The video discusses the journey of Straight Path, starting with its settlement with the FCC to sell its 5G spectrum. Initially valued at $34 per share, the company saw a significant market reaction, with shares jumping to $42. In April, AT&T made a $95 per share offer, sparking a bidding war with Verizon. The competition concluded with Verizon acquiring Straight Path for $184 per share. The video also highlights the impact on short sellers, who faced substantial losses due to the unexpected bidding war.

What was the initial reaction of the market to Straight Path's settlement with the FCC?

• The share price decreased significantly.

• The share price remained stable.

• The share price increased from $34 to $42.

• The share price was unaffected.

What was the initial offer made by AT&T for Straight Path's 5G spectrum?

• $230 per share

• $184 per share

• $95 per share

• $42 per share

Which company ultimately acquired Straight Path, and at what price per share?

• AT&T for $184 per share

• Verizon for $230 per share

• Verizon for $184 per share

• AT&T for $95 per share

What percentage of Straight Path's shares were sold short before AT&T's bid?

• 10%

• 75%

• 33%

• 50%

How much did short sellers lose as a result of the bidding war?

• $480 million

• $600 million

• $100 million

• $250 million