logo
AT&T to Acquire Lumen's Mass Markets Fiber Business

AT&T to Acquire Lumen's Mass Markets Fiber Business

Cision Canada21-05-2025

AT&T agrees to acquire substantially all of Lumen's Mass Markets fiber internet connectivity business in a deal that's expected to close in the first half of 2026
Transaction to stimulate investment, expand world-class connectivity in the U.S., create new jobs and make high-speed fiber internet access available to millions of Americans
AT&T will extend its industry-leading fiber network with plans to reach approximately 60 million total fiber locations by year-end 2030 1
DALLAS, May 21, 2025 /CNW/ --
Key Takeaways:
AT&T will acquire substantially all of Lumen's Mass Markets fiber business, which today totals about 1 million fiber customers and reaches more than 4 million fiber locations across 11 U.S. states.
AT&T reiterates full-year 2025 financial and operational guidance and share repurchase plans.
Note: For more transaction details, management and investor relations comments are available HERE, along with AT&T's 8-K.
AT&T (NYSE: T) (the Company) has reached an agreement to acquire substantially all of Lumen's (NYSE: LUMN) Mass Markets fiber business for $5.75 billion, subject to purchase price adjustments, in an all-cash transaction that will expand investment in critical U.S. connectivity infrastructure, create new middle-class jobs, and accelerate high-speed fiber internet access to millions of Americans.
"We're leading the race to connect more Americans with fiber, the best broadband connectivity technology available," said John Stankey, Chairman and CEO, AT&T. "This deal with Lumen represents a significant investment in U.S. connectivity infrastructure that will create jobs and spur economic activity in numerous regions and major metro areas across 11 states. As we advance our fiber build, we'll serve more communities with world-class connectivity and expect to roughly double where AT&T Fiber is available by the end of 2030."
The Lumen Mass Markets fiber assets included in the deal today total about 1 million fiber subscribers across more than 4 million fiber locations. Over time, these subscribers will transition to be AT&T Fiber customers and enjoy the many benefits of being connected by America's fastest-growing fiber provider. 2
Customers with AT&T Fiber today enjoy every day, simple pricing and a premier home internet experience – delivering unmatched value and service. AT&T Fiber is backed by the AT&T Guarantee and offers multi-gig speeds 3, built-in security, dependability and optimal in-home coverage.
Serving more Americans with the best connectivity experience
The transaction will enable AT&T to significantly expand access to AT&T Fiber in major metro areas like Denver, Las Vegas, Minneapolis-St. Paul, Orlando, Phoenix, Portland, Salt Lake City and Seattle, as well as additional geographies. AT&T expects this transaction to deliver significant value to consumers, shareholders and the Company. Highlights include:
Expanding the availability of AT&T Fiber. AT&T expects to significantly grow the number of AT&T Fiber customers within the acquired fiber footprint, using its extensive distribution, the strengths of AT&T Fiber, and the value of the AT&T Guarantee. Over time, AT&T expects to increase fiber customer penetration within the acquired footprint to levels more consistent with its current penetration of AT&T Fiber.
Accelerating an efficient build engine for constructing fiber home internet connectivity outside of AT&T's traditional wireline operating region. Through this transaction, AT&T will gain access to Lumen's substantial fiber construction capabilities within its incumbent local exchange carrier (ILEC) footprint and plans to accelerate the pace at which fiber is being built in these territories. AT&T now expects to reach approximately 60 million total fiber locations by the end of 2030 – roughly doubling where AT&T Fiber is available today.
Giving American consumers more choice when selecting broadband and wireless services the way they prefer – with fiber and 5G together. Customers with both AT&T Fiber and the Company's wireless services are more likely to recommend AT&T, remain customers longer and provide the best returns. AT&T expects that its ability to offer 5G wireless and fiber broadband connectivity within Lumen's Mass Markets fiber footprint will enable the Company to grow its base of high-value converged customer relationships and drive gains in its Mobility business.
Transaction details and ongoing agreements with Lumen
The acquired portion of the Lumen Mass Markets business includes last-mile Mass Markets fiber assets and the associated network elements in central offices that enable fiber services, as well as substantially all of Lumen's Mass Markets fiber customers. This will position AT&T to deliver a consistent experience to AT&T Fiber customers within Lumen's Mass Markets footprint over time.
AT&T will hold the acquired fiber network assets, including certain fiber network deployment capabilities, in a new, fully owned subsidiary ("NetworkCo"). It is expected that along with the fiber assets, certain employees will move, or receive offers to move, from Lumen to AT&T or NetworkCo as a part of this deal.
Lumen's enterprise fiber customers and Mass Markets copper-based customers as well as the associated assets to support them are not part of this agreement.
After closing, Lumen will provide AT&T with services and support under multiple transitional agreements. These agreements are expected to last approximately two years after deal close and will cover certain field operations, network deployment, IT systems, billing, customer support, and other services. As part of the transaction, AT&T will also receive long-term access to certain Lumen central offices, poles, and conduits.
The transaction is expected to close in the first half of 2026 and is subject to regulatory approval by the Department of Justice as well as other customary closing conditions.
AT&T plans to engage an equity partner after closing Lumen transaction
After closing the transaction with Lumen, the Company plans to sell partial ownership of NetworkCo to an equity partner that will co-invest in the ongoing business. AT&T expects to identify an equity partner and close a transaction within approximately 6-12 months of closing the transaction with Lumen.
Upon closing a transaction with an equity partner, the Company expects NetworkCo will be deconsolidated from AT&T's financial statements and operate as a wholesale commercial open access platform, providing fiber access services to AT&T as the anchor tenant. All acquired Lumen Mass Markets fiber customers will remain AT&T customers.
AT&T believes this planned structure is consistent with its balanced approach to capital allocation – supporting the accelerated and capital-efficient expansion of AT&T Fiber outside of its traditional wireline operating region.
Based on AT&T's position as the operator of the largest and fastest-growing fiber broadband network in the U.S. and track record of generating attractive returns on its fiber investments, the Company is highly confident it can secure an equity partner for NetworkCo.
AT&T remains committed to long-term priorities, financial targets and capital returns plans
This transaction aligns with the priorities outlined at AT&T's 2024 Analyst & Investor Day, including its goal of becoming the best connectivity provider in America while providing more value to customers, shareholders and the Company. These priorities have not changed, and AT&T continues to operate the business to achieve the financial plan and capital returns outlined in December 2024.
The Company expects that this transaction will drive returns that are comparable to AT&T's current fiber investments, as outlined at its 2024 Analyst & Investor Day. In the 12-24 months following close, the impact of the transaction is expected to be immaterial to consolidated adjusted EBITDA, adjusted EPS and free cash flow, and accretive over the long-term.
AT&T expects to continue operating within its net leverage target of net debt-to-adjusted EBITDA in the 2.5x range following the transaction with Lumen and anticipated transaction with an equity partner for NetworkCo.
The Company remains committed to repurchasing shares under the previously announced $10 billion authorization, with plans to repurchase at least $3 billion of common stock by year-end and the remainder during 2026. AT&T reiterates all full-year 2025 financial and operational guidance.
To automatically receive AT&T financial news by email, please subscribe to email alerts.
Cautionary Language Concerning Forward-Looking Statements
Information set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. A discussion of factors that may affect future results is contained in AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update and revise statements contained in this news release based on new information or otherwise. Adjusted EBITDA, adjusted EPS, free cash flow and net debt-to-adjusted EBITDA estimates depend on future levels of revenues, expenses, cash from operating activities, capital expenditures, vendor financing payments and other metrics which are not reasonably estimable at this time. Accordingly, we cannot provide reconciliations between these projected non-GAAP metrics and the most comparable GAAP metrics and related ratios without unreasonable effort.
About AT&T
We help more than 100 million U.S. families, friends and neighbors, plus nearly 2.5 million businesses, connect to greater possibility. From the first phone call 140+ years ago to our 5G wireless and multi-gig internet offerings today, we @ATT innovate to improve lives. For more information about AT&T Inc. (NYSE:T), please visit us at about.att.com. Investors can learn more at investors.att.com.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

As U.S. Uncertainty Sparks Travel Boom in Canada, RVezy Urges Canadian RV Owners to Cash In on Soaring Demand Français
As U.S. Uncertainty Sparks Travel Boom in Canada, RVezy Urges Canadian RV Owners to Cash In on Soaring Demand Français

Cision Canada

time2 hours ago

  • Cision Canada

As U.S. Uncertainty Sparks Travel Boom in Canada, RVezy Urges Canadian RV Owners to Cash In on Soaring Demand Français

With 300% increase in U.S. travelers to Canada, RV rental platform RVezy calls on Canada's 2 million RV owners to list their vehicles and earn thousands this summer OTTAWA, ON, June 10, 2025 /CNW/ - Political instability south of the border is fueling a surge in Canadian travel—and RV owners have a golden opportunity to cash in. RVezy, Canada's leading peer-to-peer, RV rental platform, is reporting a 300% year-over-year spike in bookings from American travelers, along with a major increase in interest from overseas visitors. As international and domestic demand hits record levels ahead of the summer season, the company is issuing a national call to action: RV owners, list your RV now and earn thousands this summer. "With over 2 million RVs sitting idle across Canada and demand hitting all-time highs, we need more RV owners to list—today," said Michael McNaught, CEO of RVezy. "This isn't just about travel—it's about helping Canadians earn meaningful income while supporting our national and local tourism economy." Big Earnings, Big Impact: Renting Pays Off RV owners on RVezy earn an average of over $10,000 per year, with many earning significantly more during the peak summer months. Yet most RVs sit unused for 11 months of the year. With rising prices and economic pressures affecting households across the country, renting out an RV is an easy, practical way to generate additional income. And because travelers spend on average $300 per day in local communities, every RV trip fuels spending at local shops, restaurants, campgrounds, and small tourism operators. "We're seeing this incredible wave of interest in Canada—not just from Americans, but from international visitors looking for safe, scenic, flexible travel," added McNaught. "Every RV rental helps support Canadian families—on both sides of the keys." No Worries, Full Protection: RVezy's All-Inclusive Approach For RV owners concerned about liability or damage, RVezy provides full insurance coverage that protects the entire value of the RV. Every rental includes 24/7 roadside assistance and is backed by a dedicated Host Experience team to guide owners through every step of the process. RVezy is a proudly Canadian company— founded by Canadians, operated by Canadians, and located in Canada, RVezy is committed to building a stronger local travel economy. Call to Action: List Your RV Before Peak Season Hits With unprecedented traveler demand and limited vehicle availability, RVezy urges RV owners across the country to list now—especially in popular gateway regions like British Columbia, Alberta, Ontario, Quebec and the Maritimes. Whether you're an occasional camper or a seasoned RV enthusiast, listing your RV this summer could make a serious difference.

Prediction: This High-Yield Dividend Stock Will Crush the S&P 500's Returns Over the Next Decade
Prediction: This High-Yield Dividend Stock Will Crush the S&P 500's Returns Over the Next Decade

Globe and Mail

time9 hours ago

  • Globe and Mail

Prediction: This High-Yield Dividend Stock Will Crush the S&P 500's Returns Over the Next Decade

A high dividend yield often signals that a company's growth days are in the rearview mirror. In many cases, the high-yielding income stream makes up most, if not all, of the return the company delivers for investors. Given the lackluster returns of many high-yielding dividend stocks, investors seeking market-crushing returns will probably overlook Brookfield Renewable (NYSE: BEPC)(NYSE: BEP) because of its more than 5% yield. However, that could prove to be a big mistake. I predict this leading renewable energy dividend stock will crush the S&P 500 's returns over the next decade. Here's why. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » A strong base return A high-yielding dividend is sometimes a warning sign for investors. The company might have a weak financial profile or lackluster growth prospects. Neither of those is an issue for Brookfield Renewable. The opposite is true for this company. For starters, the company backs its lucrative dividend with a top-notch financial Renewable sells about 90% of the renewable energy it produces under long-term, fixed-rate power purchase agreements (PPAs). Those PPAs have an average remaining term of 14 years while indexing about 70% of the company's revenue to inflation. That means Brookfield can bank on generating very predictable and steadily growing cash flow. The company estimates that the inflation escalation clauses embedded within its existing PPAs will power 2% to 3% annual growth in its funds from operations (FFO) per share. Meanwhile, power rates have been growing faster than inflation in recent years. That trend seems likely to continue, given the expected surge in power demand driven by catalysts like AI data centers. Brookfield anticipates that margin enhancement activities such as securing higher market power rates as legacy PPAs expire will add another 2% to 4% to its FFO per share each year. On top of generating very stable and steadily rising cash flow, Brookfield has a strong investment-grade balance sheet. It funds its business with long-term, fixed-rate debt and keeps ample liquidity on hand, to the tune of $4.5 billion at the end of the first quarter. Brookfield also routinely recycles capital, selling mature assets to fund higher-returning new investments, which enables it to maintain its financial flexibility. The company's combination of stable cash flow and balance sheet strength puts its more than 5%-yielding dividend on a sustainable foundation. It should provide investors with very bankable dividend income. A powerful growth profile Brookfield Renewable can grow its FFO per share at a 4% to 7% annual rate without investing any additional capital. That would be a solid growth rate for a high-yielding dividend stock. However, the company has the financial flexibility to invest heavily in growing its platform. It's currently targeting to deploy $8 billion to $9 billion or more into new growth opportunities over the next five years. Some of that capital will go into its massive backlog of renewable energy development projects. Brookfield currently has 74 gigawatts (GW) in its advanced-stage pipeline. That's nearly double its current operational capacity (43.3 GW). The company is ramping up its development capabilities to reach an annual commissioning run rate of 10 GW per year, which it expects to achieve by 2027. That's up from 8 GW this year. Development projects will add another 4% to 6% to its FFO per share each year. On top of that, the company plans to continue making accretive acquisitions, largely funded through capital recycling, to further accelerate its FFO growth rate. Brookfield recently closed its acquisition of European renewable power developer Neoen. Meanwhile, it agreed to buy National Grid 's U.S. onshore power platform, National Grid Renewables. Add it all up, and Brookfield believes it can grow its FFO per share at a more than 10% annual rate through 2034. The company's growth is highly visible and secured through 2029 and increasingly visible and secured over the subsequent five-year period. That easily supports its plan to increase its dividend by 5% to 9% annually. Brookfield has grown its payout at a 6% compound annual rate since 2001. It all adds up to the potential for producing market-crushing returns Brookfield Renewable pays a more than 5% yielding dividend, which provides investors with a strong base return. On top of that, the company expects to grow its earnings per share at a rate of more than 10% annually for the next several years. That should easily support its plan to increase its already high-yielding payout by 5% to 9% per year. Put it all together, and Brookfield could produce total annual returns in the mid-teens, which should crush the S&P 500's return over the next 10 years. That makes it a great stock to buy and hold right now. Should you invest $1,000 in Brookfield Renewable right now? Before you buy stock in Brookfield Renewable, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Brookfield Renewable wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor 's total average return is792% — a market-crushing outperformance compared to173%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025

John Ivison: Carney's new defence plan takes seriously the darker world we're now living in
John Ivison: Carney's new defence plan takes seriously the darker world we're now living in

Calgary Herald

time10 hours ago

  • Calgary Herald

John Ivison: Carney's new defence plan takes seriously the darker world we're now living in

Article content Justin Trudeau went to Washington for last year's NATO summit and unveiled what he called a 'credible, verifiable path' to spending two per cent of Canada's GDP on defence … by 2032. Article content The lack of urgency and ambition was reflected in the then prime minister's belief that two per cent is a 'nominal target' that makes for easy headlines but doesn't make Canadians more safe. Article content Article content Article content His disdain for military spending was apparent in a Washington Post story from 2023, when he reportedly told the Americans that Canada would never hit two per cent. Article content Article content If credibility is a leader's currency, Trudeau left the U.S. capital bankrupt in the eyes of many of Canada's allies. Mike Johnson, the House speaker, said Canada was riding on America's coattails and called it 'shameful.' Article content Mark Carney, who is heading for this year's NATO summit in The Hague later this month, clearly did not want a repeat of the Washington debacle, especially as NATO secretary-general Mark Rutte is proposing a new target of 3.5 per cent of economic output on military spending and another 1.5 per cent on 'defence-related expenditure.' Article content On Monday, Carney announced that Canada will hit the two per cent target this fiscal year, five years ahead of the schedule he set during the general election. Article content Article content Canada will spend an additional $9.3 billion this year in a defence package that is primarily focused on improving operational readiness. Article content Article content 'Canadian leadership will be defined not just by the strength of our values but also by the value of our strength,' Carney said, using another JFK-style antimetabole ('Ask not what your country can do for you, ask what you can do for your country.'). Article content Last year, Trudeau expressed frustration that his government got no credit for doubling defence spending over his decade in power. 'We have stepped up massively,' he said. Article content Carney acknowledged the increase in spending over the past 10 years, but also pointed out Canada's defence deficiencies: aging infrastructure and equipment; just one submarine being seaworthy at any given time; and, only half the marine fleet and land vehicles being operational, leaving the military more reliant on the U.S. than ever.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store