SPCI’s President & Chief Executive Officer, David Jonas, said, “The spin-off of Straight Path Communications is an important milestone in our efforts to realize the full potential of our spectrum holdings and intellectual property.”
“Our spectrum licenses, originally purchased from Winstar Communications, cover virtually the entire United States and offer a superior wireless backhaul solution. They are a cost effective alternative to fiber optic cables for data transport within telecom and Internet networks. Our intellectual property, which was central to Net2Phone’s success as an early leader in the VoIP industry, is being directly infringed by communications services and by the electronic manufacturers that pre-install these services on their equipment,” Jonas added.
“As a company that was nurtured within IDT—as were Net2Phone, Genie Energy, and IDT Entertainment — Straight Path brings a profound appreciation for innovation and the development of assets to maximize value for our shareholders,” Jonas concluded.
So far, shareholders who received the stock have not been as enthusiastic as Rabbi Jonas, with early selling pushing the stock down 18% from its open to $5.18 at 11AM. There may be indeed be value in the spectrum and intellectual property which the company owns, but it remains to be seen how much of it can be unlocked for shareholders by this novice CEO. Rabbi Jonas and his father would do well to remember the Talmudic principle Tafasta meruba lo tafasta(if you have grabbed too much you have not grabbed anything) as they navigate what is likely to be anything but a straight path.
Disclosure: The author holds no position in any stock mentioned
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- ‘My Name Is Jonas’ – IDT’s Straight Path Spinoff Nepotistic CEO Choice Raises Questions For Investors (stockspinoffs.com)
- IDT Corp. Announces Details of Straight Path Spin-Off (dailyfinance.com)
