On Wednesday, AT&T Inc. (NYSE:T) announced an agreement to acquire substantially all of Lumen Technologies’ (NYSE:LUMN) consumer fiber business for $5.75 billion in cash, subject to purchase price adjustments. This aims to expand AT&T’s national fiber footprint, which is expected to close in H1 2026, pending regulatory approval by the Department of Justice and other customary closing conditions.
Close-up of a technician’s hands adjusting a communication router.
The acquisition will add ~1 million fiber customers to AT&T Inc.’s (NYSE:T) base and extend its fiber-network operations in major metropolitan areas across 11 US states. This expansion aligns with AT&T’s goal to reach ~60 million total fiber locations by year-end 2030, which would almost double its current fiber availability. For Lumen Technologies, the sale of its consumer fiber assets allows the company to sharpen its focus on its enterprise fiber business.
Chris Stansbury, CFO of Lumen, stated that the cash proceeds from the sale will help Lumen reduce its debt by $4.8 billion and enhance cash flow by cutting interest expenses by over $300 million annually. Lumen will retain its enterprise and wholesale fiber customers, its national fiber backbone network infrastructure, and its existing copper network that primarily serves consumer customers.
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This article is originally published at Insider Monkey.
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