AT&T's $1.6 billion acquisition of Straight Path Communications at first glance may seem like management continues to be on a path to empire building at the expense of shareholders.
After all, the deal is an all-stock deal that is yet another example of investor dilution that will make stronger dividend growth harder
You forget to source the investing website SeekingAlpha, which "your opinion" is taken from verbatim.
With no way to grow, the only way to increase profits is cutting costs. That seems a reasonable explanation to me, or doing what yahoo did in the past, buy, buy , buy companies, all types before they almost lost the stock value, now they are part of Verizon, the only affected were the employees