From Yahoo Finance: 2025-05-22 11:50:00

AT&T Inc. is acquiring Lumen Technologies Inc.’s consumer fiber operations for $5.75 billion, expanding its broadband service in cities like Denver and Las Vegas. The deal aims to reach 60 million locations by 2030. Lumen has 1 million fiber customers and reaches over 4 million locations in 11 US states.

AT&T will form a new subsidiary to hold the acquired assets and plans to sell partial ownership to an equity partner within 6-12 months of completing the transaction. CEO John Stankey said the tax bill will stimulate investment in fiber-optic technology, supporting AT&T’s expansion of fiber outside traditional landline operations.

Fiber technology is crucial for data consumption, and AT&T plans to double its fiber footprint by 2030. The company also announced a partnership with BlackRock Inc. called Gigapower LLC. The telecommunications industry is seeing increased dealmaking, with recent acquisitions like Frontier Communications by Verizon Communications Inc. and Charter Communications Inc. merging with Cox Communications.

Read more: AT&T Buys Lumen’s Consumer Fiber Business for $5.75 Billion