AT&T to Acquire Lumen’s Fiber Business in $5.75 Billion Deal
$LUMN
In a significant development in the telecommunications sector, AT&T (NYSE:T) has agreed to purchase a substantial portion of Lumen Technologies’ (NYSE:LUMN) mass markets fiber business for $5.75 billion. This strategic move is set to reshape the high-speed fiber internet landscape in the United States, promising enhanced connectivity for millions. The transaction, slated to close in the first half of 2026 pending regulatory approval, involves approximately 1 million fiber subscribers and over 4 million fiber serviceable locations across 11 states.
The company has reiterated its 2025 financial guidance, emphasizing that the transaction will support job creation and economic growth in the connected communities. On the market front, Lumen Technologies has shown a remarkable performance, with its shares surging 15.5% following the announcement of the deal. This surge reflects the market’s positive reception of the strategic realignment and potential growth prospects stemming from the transaction.
Lumen is not only expanding through strategic acquisitions but also through internal advancements in technology and service offerings. The company has been actively capitalizing on the growing demand for its Private Connectivity Fabric (PCF) solutions, spurred by the rapid proliferation of artificial intelligence.
With $8.5 billion in PCF deals secured in 2024 alone, Lumen is positioning itself as a critical player in the infrastructure necessary for AI and large-scale digital transformations. Moreover, Lumen is pushing forward with its plans to streamline operations and reduce costs significantly. The company aims to achieve $1 billion in cost savings by the end of 2027 through infrastructure simplification across its network, product portfolio and IT systems.
The acquisition by AT&T represents a major step forward in Lumen’s strategy to enhance its service offerings and market reach. Meanwhile, the company’s focus on technological advancements and operational efficiencies continues to play a crucial role in its long-term success. As Lumen navigates these changes, the telecommunications landscape is set to evolve, potentially bringing more innovative solutions and better connectivity to consumers and businesses alike.
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