AT&T Buys Lumen's Consumer Fiber Business for $5.75 Billion
(Bloomberg) — AT&T Inc. agreed to buy the consumer fiber operations of Lumen Technologies Inc. for $5.75 billion, expanding its fast broadband service in major cities like Denver and Las Vegas.
Can Frank Gehry's 'Grand LA' Make Downtown Feel Like a Neighborhood?
Chicago's O'Hare Airport Seeks Up to $4.3 Billion of Muni Debt
NJ Transit Makes Deal With Engineers, Ending Three-Day Strike
AT&T will pay cash for the unit of Lumen, according to a statement Wednesday. Talks between the companies were reported earlier by Bloomberg News. The sale is subject to regulatory approval and is expected to close in the first half of next year.
The deal helps AT&T increase its long-term goal of putting its fiber-optic lines within reach of more homes and businesses. The Dallas-based wireless and broadband company now says it aims to reach 60 million locations by 2030, about double where AT&T Fiber is available today. Lumen had said earlier that the consumer fiber business didn't fit with its focus on serving enterprise customers.
Lumen has 1 million fiber customers and reaches more than 4 million locations across 11 US states, AT&T said.
As part of the transaction, AT&T will form a new subsidiary that will hold the acquired assets. After closing, AT&T plans to sell partial ownership of the subsidiary to an equity partner that will co-invest in the business. AT&T expects to identify the partner and close a deal within about six to 12 months of completing the transaction with Lumen.
AT&T said the structure will help support the expansion of AT&T Fiber outside of the phone giant's traditional landline operations. The company also reiterated its 2025 financial guidance.
In 2022, AT&T announced a similar partnership with BlackRock Inc. called Gigapower LLC.
Lumen advanced as much as 25% to $4.77 in extended trading. AT&T was little changed.
Fiber and telecommunications have become a hotbed of dealmaking. Earlier this month, the US Federal Communications Commission approved the sale of Frontier Communications to Verizon Communications Inc. Frontier had billed itself as the 'largest pure-play fiber internet company in the US.'
On May 16, Charter Communications Inc. agreed to combine with closely held Cox Communications in a $34.5 billion cash-and-stock deal that would unite two of the biggest US cable providers. The combined company would be the top broadband operator in the US, and increase Charter's subscriber base by more than 20%, Bloomberg Intelligence analyst Geetha Ranganathan said at the time.
(Updates terms starting in fifth paragraph.)
Why Apple Still Hasn't Cracked AI
Inside the First Stargate AI Data Center
Anthropic Is Trying to Win the AI Race Without Losing Its Soul
Microsoft's CEO on How AI Will Remake Every Company, Including His
Cartoon Network's Last Gasp
©2025 Bloomberg L.P.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Fox Sports
35 minutes ago
- Fox Sports
Qualifying Notes: Kyle Moyer Lands New Job with Arrow McLaren
INDYCAR Kyle Moyer's time as a free agent didn't last long. The veteran team manager who was one of three executives released last month by Team Penske has been hand-picked by Arrow McLaren Team Principal Tony Kanaan to join the Indianapolis-based NTT INDYCAR SERIES program. Moyer will be the organization's director of competition beginning with next week's test at Iowa Speedway. Kanaan and Moyer worked together for years at Andretti Global when Kanaan was a driver. Moyer was the team manager when Kanaan won the INDYCAR SERIES championship in 2004. Moyer left Michael Andretti's team in 2015 to join Roger Penske's organization. Moyer, along with Team President Tim Cindric and Managing Director Ron Ruzewski, were released by Team Penske in advance of the recent Indianapolis 500 presented by Gainbridge after the cars of defending champion Josef Newgarden and Will Power were found with unapproved modifications ahead of qualifying. At Arrow McLaren, Moyer will replace Kanaan as the race strategist for Nolan Siegel, allowing Kanaan to work with all three Arrow McLaren drivers on race weekends. Kanaan told the Associated Press that almost every team in the paddock tried to hire Moyer, but the relationship the two of them have gave McLaren the edge. 'Kyle is one of the best strategists in the paddock, so talking about his qualities, not just about him as a human being, he knows a lot about racing,' Kanaan told the AP. 'Kyle probably is one of the top guys of knowledge of INDYCAR. He's been around it his entire life.' Moyer grew up in Monrovia, Indiana, and was brought into the sport by the Bettenhausen family. Kirkwood Credits Decision Making to Surge Series points leader Alex Palou had the spotlight for most of the first half of the season. A dominant start featured five wins in six races, including an Indy 500 victory, and made him the undisputed championship favorite. But lately, Andretti Global's Kyle Kirkwood has turning heads – and is turning the title tide. Kirkwood has surged to third in the standings, 75 points behind Palou, thanks to wins in the only three races Palou hasn't claimed. Kirkwood had just two wins in his first 53 series races. He now has three wins in the past six races. 'I think he's always been there,' Colton Herta said of his teammate heading into Sunday's XPEL Grand Prix at Road America Presented by AMR (1:30 p.m. ET, FOX, FOX Deportes, FOX Sports app, INDYCAR Radio Network). 'Maybe he's gotten a little bit better at how to race and when to go fast in races, and that just comes (with experience). But I think he's driving pretty similar to last year. He just had bad luck with penalties last year.' Kirkwood agrees the difference isn't raw speed but decision making. He cited last year's fifth-place finish at Road America as an example of when pushed too hard early in the race trying to stave off eventual third-place finisher Scott McLaughlin. The effort backfired and opened the door for McLaughlin and Palou to pass. 'I realized later it was inevitable,' Kirkwood said. 'I pushed too hard too early.' We'll see what he learned from last year. Dixon Penalized for Impeding DeFrancesco Six-time series champion Scott Dixon said he was trying to create a gap to maximize his chances of advancing in qualifying, but race officials said Dixon impeded the hot lap of Rahal Letterman Lanigan Racing's Devlin DeFrancesco during the first round of qualifying. The penalty proved costly to the Chip Ganassi Racing veteran. Rather than advancing to the Fast 12 and perhaps earning a top-10 starting position, Dixon lost his two fastest laps and was reduced to the 25th starting position. Only three times in his career has he started farther back, including 26th earlier this year in the Children's of Alabama INDYCAR Grand Prix at Barber Motorsports Park. He finished 12th in that race. 'It is what it is, man,' he said in ending an interview with FOX's Kevin Lee on pit road. recommended
Business Insider
an hour ago
- Business Insider
Morgan Stanley Sticks to Their Hold Rating for T&D Holdings (TDHOF)
Morgan Stanley analyst Atsuro Takemura maintained a Hold rating on T&D Holdings (TDHOF – Research Report) yesterday and set a price target of Yen3,420.00. The company's shares closed last Friday at $21.57. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter According to TipRanks, Takemura is a 2-star analyst with an average return of 7.2% and a 50.00% success rate. T&D Holdings has an analyst consensus of Moderate Buy, with a price target consensus of $28.41. TDHOF market cap is currently $11.37B and has a P/E ratio of 14.30.
Miami Herald
2 hours ago
- Miami Herald
JetBlue is pulling out of the Miami airport, but will remain at FLL. See details
JetBlue Airways will halt service at Miami International Airport, the airline said on Saturday. The Long Island City-based carrier cited poor financial performance. JetBlue has a small footprint at MIA, with one or two daily flights between MIA and Boston. But 'to free aircraft for new routes, we've recently made the decision to end a small number of unprofitable flights including between Boston and Miami,' Derek Dombrowski, director of corporate communications, said in an email statement sent to the Miami Herald. The changes are effective Sept. 3, he said. Travelers booked on cancelled flights 'will have the option to fly via Fort Lauderdale or receive a full refund to their original form of payment,' Dombrowski said. The move was a business decision. 'We continually evaluate how our network is performing and make changes as needed,' Dombrowski said. JetBlue informed MIA of the changes on Friday, Greg Chin, communications director for Miami-Dade Aviation Department, said in a phone call with the Miami Herald on Saturday. He didn't elaborate on other details. JetBlue's Fort Lauderdale presence JetBlue will continue to fly to Boston from nearby Fort Lauderdale-Hollywood International Airport as well as West Palm Beach, Dombrowski said. The airline has a strong presence at FLL. In 2024, JetBlue served about 6.8 million passengers at FLL, down 2.1% from 2023 but still the second largest carrier at that airport, only behind Spirit. It carried 19% of all travelers to and from the Broward County airport. This year, JetBlue remains FLL's second largest carrier. Through April 30, the airline had 2.2 million passengers, even though that's down 6% from the same period in 2024. In 2021, to make a larger bet on South Florida as the COVID-19 pandemic was still in full force, JetBlue expanded at MIA, adding as many as 14 daily flights, including as many as four times a day to Boston. The airline also added direct flights between MIA and New York-JFK, Newark, Los Angeles and Hartford. Since then, JetBlue has scaled back service in Miami due to falling demand. It was also slowed down by the 2024 ruling of a federal judge in Massachusetts that blocked an attempted merger with Broward-based Spirit, citing anti-competitive laws. On Saturday, JetBlue had a total of two arrivals at MIA, each one from Boston, according to the airport's flight tracker. And it had one departure, also to Boston.
