| SAN FRANCISCO
SAN FRANCISCO Jan 12 Straight Path
Communications Inc, a holder of licenses to wireless
spectrum, said it has settled with the U.S. Federal
Communications Commission, resolving an investigation into the
As part of the settlement, Straight Path will pay $15
million to the FCC and give the regulator a 20 percent cut of
any sale of its spectrum licenses, the company said in a
statement on Thursday.
The FCC had made inquiries into Straight Path's former
parent company IDT Corp and its spectrum licenses
following allegations of fraud that were made against the
company by an anonymous shortseller.
Straight Path's main asset is its licenses for airwaves that
could be used by wireless operators in emerging 5G technology.
Wireless providers such as AT&T Inc and Verizon
Communications Inc are hungry for airwaves to help them
expand their networks.
In July 2016, the FCC made a rule change that allowed for
the 28GHz and 39GHz bands, a major part of Straight Path's
spectrum holdings, to be used in mobile communications.
Straight Path is also hiring investment bank Evercore
Partners Inc to help the company explore strategic
As part of the consent decree, if Straight Path does not
announce the sale of its spectrum licenses in the next 12
months, it will have to pay the FCC $85 million or return its
"We are pleased that we were able to achieve a comprehensive
settlement with the FCC, which allows us to move forward," Chief
Executive Davidi Jonas said in the statement.
The settlement may put an end to some of the uncertainty
surrounding the company, whose stock seesawed in late 2015 from
$50 to less than $8. Besides the anonymous shortseller, it had
also been targeted by New York-based Kerrisdale, a $400 million
hedge fund that shorts stocks publicly.
Shares in Straight Path closed 5.6 percent lower at $31.41
per share on Wednesday.
(Reporting by Liana B. Baker in San Francisco; Editing by