On March 29, 2024, Shenandoah Mobile, LLC, a wholly-owned subsidiary of Shentel, completed the initial closing of its previously disclosed sale of substantially all of Shentel’s tower portfolio and operations (“Tower Portfolio”) to Vertical Bridge Holdco, LLC for $309.9 million (the “Tower Transaction”). The Tower Transaction represented a strategic shift in the Company’s business and the Tower Portfolio was reclassified as a discontinued operation. As a result, for all periods presented, the operating results and cash flows related to the Tower Portfolio were reflected as a discontinued operations in our unaudited condensed consolidated statements of operations and unaudited condensed consolidated statements of cash flows.

Income from discontinued operations, net of tax in the unaudited condensed consolidated statements of operations consist of the following for the period:


(in thousands)	Three Months Ended June 30,		Six Months Ended June 30,
	2024		2024
Service revenue and other	$	—	$	4,542
Operating expenses:
Cost of services	—		1,059
Selling, general and administrative	—		572
Depreciation and amortization	—		222
Total operating expenses	—		1,853
Operating income	—		2,689
Other income:
Gain on sale of disposition of Tower Portfolio	—		294,250
Other expense	(129)		(129)
(Loss) income before income taxes	(129)		296,810
Income tax (benefit) expense	(30)		78,123
(Loss) income from discontinued operations, net of tax	$	(99)	$	218,687

Consummation of the sale triggered the recognition of approximately $4.4 million of incremental transaction costs during the six months ended June 30, 2024, for contingent deal advisory fees and legal expenses, which are netted against the gain on sale of disposition of Tower Portfolio.