Verizon acquires Frontier Communications for $20 billion in a major telecom merger to strengthen its fiber business. The deal adds Frontier’s 2.2 million fiber customers to Verizon's existing Fios network, increasing its reach as it looks to better compete with industry rivals like AT&T.
Verizon will pay $38.50 per share for Frontier, a 37% premium over the company’s stock price before news of the deal surfaced. The acquisition adds Frontier’s 2.2 million fiber customers across 25 states to Verizon's 7.4 million Fios customers base in nine states and Washington, D.C.
The merger marks a notable shift for Frontier, which filed for bankruptcy in 2020 but restructured and focused on fiber development. Pending regulatory and shareholder approval, the deal is expected to close in 18 months.
This acquisition reflects a broader trend in the telecommunications industry as companies increasingly focus on expanding fiber networks. With the cost of building out these networks rising, consolidation has become a popular strategy. AT&T, for example, has prioritized fiber and 5G expansion, while T-Mobile has also sought new partnerships, recently forming a joint venture to acquire Metronet.
Verizon’s deal with Frontier is significant as telecom companies seek to meet growing consumer demand for faster, more reliable internet connections. Frontier, which emerged from bankruptcy in 2021, had been pressured by activist investors to explore a sale.
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