AT&T to buy Lumen’s fiber assets for $5.75 billion

DALLAS - AT&T Inc. (NYSE: T) has announced an agreement to acquire the bulk of Lumen Technologies’ (NYSE: LUMN) Mass Markets fiber business for $5.75 billion in cash. The deal, expected to close in the first half of 2026, will include about 1 million fiber customers and the infrastructure reaching over 4 million fiber locations across 11 states in the U.S.

This strategic move is set to enhance AT&T’s fiber network coverage, with plans to double the availability of AT&T Fiber by year-end 2030. The acquisition will allow AT&T to offer improved connectivity in several major metro areas, including Denver, Las Vegas, Minneapolis-St. Paul, Orlando, Phoenix, Portland, Salt Lake City, and Seattle.

John Stankey, Chairman and CEO of AT&T, highlighted the transaction’s potential to boost economic activity, create jobs, and provide superior broadband connectivity. As part of the transition, subscribers will shift to AT&T Fiber, which is marketed as providing simple pricing and a premier internet experience with multi-gig speeds and built-in security features.

The transaction includes last-mile fiber assets, related network elements, and customer relationships, which will be held by a new AT&T subsidiary, NetworkCo. Some Lumen employees are expected to transfer to AT&T or NetworkCo as part of the deal. Lumen will continue to assist AT&T with various transitional services for approximately two years post-closure.

Further, AT&T plans to engage an equity partner to co-invest in NetworkCo after the Lumen transaction closes. NetworkCo is expected to function as a wholesale commercial open access platform, with AT&T as the anchor tenant. The partnership is anticipated to align with AT&T’s capital allocation strategy and support the expansion of its fiber network.

The agreement is subject to regulatory approvals, including from the Department of Justice, and other customary closing conditions. AT&T has reiterated its full-year 2025 financial and operational guidance and its share repurchase plans, emphasizing its commitment to achieving long-term financial targets and providing shareholder value.

This news is based on a press release statement issued by AT&T.

In other recent news, Lumen Technologies reported financial outcomes that exceeded expectations, particularly with a 10% year-over-year increase in strategic growth product revenues. The company’s EBITDA performance surpassed both Citi analysts’ forecasts and the consensus, leading to a reaffirmation of its full-year guidance for EBITDA and Free Cash Flow. Meanwhile, Raymond James upgraded Lumen’s stock rating from Market Perform to Outperform, citing potential significant developments, including the anticipated sale of Fiber-to-the-Home assets. This sale is expected to improve Lumen’s financial leverage, possibly reducing it by a full turn, according to the analyst. Additionally, Lumen Technologies announced the election of new board members, Michelle J. Goldberg and Steve McMillan, during its recent annual shareholder meeting. The company also appointed Mark Hacker as its new Executive Vice President and Chief Legal Officer, bringing over two decades of legal experience. In shareholder decisions, a reverse stock split was approved, allowing Lumen to consolidate shares at a ratio between 1-for-2 and 1-for-15. Lastly, Citi adjusted its price target for Lumen to $6.00 from $6.50, maintaining a Buy rating despite the revision.

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