AT&T has agreed to acquire Lumen Technologies’ consumer fiber business for $5.75 billion in cash, a strategic move aimed at significantly expanding AT&T’s fiber network across key U.S. cities. (reuters.com)
Expansion of Fiber Network
This acquisition will add approximately 1 million fiber internet customers to AT&T’s portfolio and enhance its fiber infrastructure in cities such as Denver, Las Vegas, Minneapolis-St. Paul, Orlando, Phoenix, Portland, Salt Lake City, and Seattle. (reuters.com)
Lumen’s Strategic Shift
Lumen Technologies plans to use the proceeds from this sale to reduce its debt by $4.8 billion and decrease annual interest expenses by over $300 million. This financial restructuring will allow Lumen to focus more on its enterprise fiber business and invest in low-latency technologies essential for supporting artificial intelligence workflows. (reuters.com)
Market Impact
Following the announcement, Lumen’s shares rose by 13% in after-market trading, reflecting positive investor sentiment toward the deal. (reuters.com)
Conclusion
The acquisition aligns with AT&T’s strategy to bolster its fiber network and subscriber base, positioning the company to better compete in the evolving telecommunications landscape.
