AT&T Inc (NYSE:T, ETR:SOBA) has agreed to acquire Lumen Technologies' Mass Markets fiber business for $5.75 billion in an all-cash transaction, significantly expanding its fiber network footprint.
Lumen’s fiber business currently serves about 1 million fiber customers and reaches across 4 million fiber locations across 11 US states, including major cities such as Denver, Las Vegas, Minneapolis, Phoenix, Portland, Salt Lake City, and Seattle.
“This deal with Lumen represents a significant investment in US connectivity infrastructure that will create jobs and spur economic activity in numerous regions and major metro areas across 11 states,” AT&T CEO John Stankey said in a statement.
“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 acquisition is expected to close in the first half of 2026, pending regulatory approval.
Post-acquisition, AT&T plans to organize the acquired assets under a new subsidiary and intends to offer a minority interest to a financial partner within 6 to 12 months after closing.
Shares of AT&T were unchanged by the announcement, trading hands at about $27 on Thursday afternoon. Shares of Lumen fell 1.2% to $3.77.