Latest news with #LumenTechnologies'
Yahoo
22-05-2025
- Business
- Yahoo
AT&T CEO on potential Trump DEI pressure for $5.75B deal: 'We don't have to roll back anything'
AT&T (T) CEO John Stankey isn't showing his hand yet on whether he plans to dial back diversity, equity, and inclusion (DEI) initiatives to gain approval for a big new fiber deal from the Trump administration. "We don't have to roll back anything," Stankey told Yahoo Finance (video above). "Our policies and our approach at AT&T have always been that we progress people on merit. That any employee that comes to work here should have an opportunity to grow their career, work on building their skills, have an opportunity to succeed and earn a living." "And our goal is to make sure that every employee that walks through the door of AT&T feels like they belong here and it's a good place for them to work," Stankey added. "And I'm pretty confident that anybody who examines our practices and how we run the business is going to come to that same conclusion." AT&T said late Wednesday it would acquire all of Lumen Technologies' (LUMN) fiber business for $5.75 billion, above the already pricey $5.5 billion that deal watchers estimated a few weeks ago. The transaction is aimed at igniting a fire under AT&T's lucrative fiber business, in part by providing bundled packages to consumers of mobile and broadband services at higher prices. Lumen Technologies stock rose 2%, while AT&T fell slightly as investors digested the transaction. Stankey said the deal is tailor-made for what the Trump administration wants to see: the creation of US jobs. "We're investing in great infrastructure that makes the US economy more competitive. We're going into footprints and markets where the previous owner didn't have the wherewithal and capability to do that," he explained. Lumen has about 1 million fiber customers spanning metro markets such as Denver, Las Vegas, Minneapolis-St. Paul, Orlando, Phoenix, Portland, Salt Lake City, and Seattle. The business is on track to generate $750 million in revenue this year. "We think this appears to be a positive strategic move for AT&T it provides incremental footprint to build fiber and drive a converged bundle offering where these assets appear to be under-penetrated," KeyBanc Capital Markets telecom analyst Brandon Nispel said in a note. AT&T sees the deal being immaterial to sales and earnings 12 to 24 months after closing but accretive in the long term. The company said the deal will help it reach 60 million households with fiber by 2030. The deal is expected to close in the first half of 2026 — with the emphasis on expected. Telecom players have recently been expanding fiber businesses through acquisitions to challenge traditional cable operator Comcast. But to pass the deals by the Trump administration and new FCC Chair Brendan Carr, the companies have had to claw back DEI initiatives per the administration's crackdown. Verizon (VZ) closed its $20 billion acquisition of fiber play Frontier last week. To gain approval, however, the company said it would no longer have any HR roles or teams focused on DEI and will remove references to the term from employee training materials. Similar concessions were made by T-Mobile (TMUS) so that it could move forward with a joint venture with fiber outfit Lumos. It had to scrub its website of DEI language, the Verge reported. On the prospects of following his competitors, Stankey said, "I don't want to prognosticate on the future when I have no idea what's going to occur, but as I said, there's an awful lot of good things for this deal where it makes perfect sense, and I feel like we run the business in a really responsible manner." Brian Sozzi is Yahoo Finance's Executive Editor and the host of the Opening Bid podcast. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-05-2025
- Business
- Yahoo
AT&T CEO: No plans to roll back DEI to gain Trump administration's approval of new $5.75 billion deal
AT&T (T) CEO John Stankey isn't showing his hand yet on whether he plans to dial back diversity, equity, and inclusion (DEI) initiatives to gain approval for a big new fiber deal from the Trump administration. "We don't have to roll back anything. Our policies and our approach at AT&T have always been that we progress people on merit. That any employee that comes to work here should have an opportunity to grow their career, work on building their skills, have an opportunity to succeed and earn a living," Stankey told me on Yahoo Finance (video above). "And our goal is to make sure that every employee that walks through the door of AT&T feels like they belong here and it's a good place for them to work," Stankey added. "And I'm pretty confident that anybody who examines our practices and how we run the business is going to come to that same conclusion." AT&T said late Wednesday it would acquire all of Lumen Technologies' (LUMN) fiber business for $5.75 billion, above the already pricey $5.5 billion that deal watchers estimated a few weeks ago. The transaction is aimed at igniting a fire under AT&T's lucrative fiber business, in part by providing bundled packages to consumers of mobile and broadband services at higher prices. Lumen Technologies stock rose 2%, while AT&T fell slightly as investors digested the transaction. Stankey said the deal is tailor-made for what the Trump administration wants to see: the creation of US jobs. "We're investing in great infrastructure that makes the US economy more competitive. We're going into footprints and markets where the previous owner didn't have the wherewithal and capability to do that," he explained. Lumen has about 1 million fiber customers spanning metro markets such as Denver, Las Vegas, Minneapolis-St. Paul, Orlando, Phoenix, Portland, Salt Lake City, and Seattle. The business is on track to generate $750 million in revenue this year. "We think this appears to be a positive strategic move for AT&T it provides incremental footprint to build fiber and drive a converged bundle offering where these assets appear to be under-penetrated," KeyBanc Capital Markets telecom analyst Brandon Nispel said in a note. AT&T sees the deal being immaterial to sales and earnings 12 to 24 months after closing but accretive in the long term. The company said the deal will help it reach 60 million households with fiber by 2030. The deal is expected to close in the first half of 2026 — with the emphasis on expected. Telecom players have recently been expanding fiber businesses through acquisitions to challenge traditional cable operator Comcast. But to pass the deals by the Trump administration and new FCC Chair Brendan Carr, the companies have had to claw back DEI initiatives per the administration's crackdown. Verizon (VZ) closed its $20 billion acquisition of fiber play Frontier last week. To gain approval, however, the company said it would no longer have any HR roles or teams focused on DEI and will remove references to the term from employee training materials. Similar concessions were made by T-Mobile (TMUS) so that it could move forward with a joint venture with fiber outfit Lumos. It had to scrub its website of DEI language, the Verge reported. On the prospects of following his competitors, Stankey said, "I don't want to prognosticate on the future when I have no idea what's going to occur, but as I said, there's an awful lot of good things for this deal where it makes perfect sense, and I feel like we run the business in a really responsible manner." Brian Sozzi is Yahoo Finance's Executive Editor and the host of the Opening Bid podcast. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email
Yahoo
22-05-2025
- Business
- Yahoo
AT&T Agrees to Buy Lumen's Mass Markets Fiber Internet Business for $5.75B
AT&T agreed to buy Lumen Technologies' Mass Markets fiber internet connectivity business for $5.75 billion in cash, sending shares of the Denver-based firm soaring in premarket trading Thursday. AT&T said acquiring the business would expand its high-speed fiber internet network and give it around 1 million additional fiber customers. AT&T said it expects the deal to close in the first half of (T) agreed to buy Lumen Technologies' (LUMN) Mass Markets fiber internet connectivity business for $5.75 billion in cash, sending shares of the Denver-based firm soaring in premarket trading Thursday. AT&T said acquiring the business would expand its high-speed fiber internet network and give it around 1 million additional fiber customers with a reach of more than 4 million fiber locations across 11 U.S. states. "We're leading the race to connect more Americans with fiber, the best broadband connectivity technology available," AT&T CEO John Stankey said. AT&T said it "now expects to reach approximately 60 million total fiber locations by the end of 2030—roughly doubling where AT&T Fiber is available today." The telecom giant, which also affirmed its full-year outlook and share repurchase plans, said it expects the deal to close in the first half of 2026. Lumen shares, which entered Thursday down almost 30% in 2025, jumped 14% in premarket trading. AT&T shares, which began the day up 20% this year, were little changed. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
