Verizon acquires Frontier for $20 billion to boost broadband business, potential for growth and synergies.

From Nasdaq, Inc.: 2024-09-06 00:08:12

Verizon is acquiring Frontier Communications for $20 billion, aiming to boost its broadband business amid slowing wireless growth and increasing competition. The deal will extend Verizon’s network to 25 million premises across 30 states, offering cost synergies and revenue opportunities through cross-selling services.

With the acquisition of Frontier, Verizon hopes to drive cost efficiencies, expand its broadband footprint, and tap into new revenue streams. Frontier’s 2.2 million fiber subscribers will help Verizon reach more customers, with projections of $500 million in annual cost synergies within three years from closing.

Verizon stock has underperformed in recent years, but the acquisition of Frontier could lead to growth opportunities and improved financial performance. The deal is expected to be accretive to Verizon’s revenue and adjusted EBITDA growth rates, with potential for synergies and cross-selling opportunities to drive future success.



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