By Janet H. Cho

AT&T has agreed to acquire substantially all of Lumen's residential fiber broadband network for about $5.75 billion in an all-cash deal.

Lumen's Mass Markets fiber business includes about one million fiber customers, including residential and business customers, and reaches more than four million fiber locations across 11 states. Lumen's subscribers will transition into AT&T customers over time.

The transaction, subject to regulatory approval, is expected to close in the first half of 2026. The deal doesn't include Lumen's enterprise fiber customers and Mass Markets copper-based customers.

"We're leading the race to connect more Americans with fiber, the best broadband connectivity technology available," AT&T Chairman and CEO John Stankey said, in a statement.

"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," he said, including in major metro areas like Denver, Las Vegas, Minneapolis-St. Paul, Orlando, Phoenix, Portland, Salt Lake City, and Seattle.

It is the latest M&A deal in fiber optic cable as large telecommunications firms race each other to build out networks. Last week, the Federal Communications Commission said it was approving a $20 billion deal by Verizon Communications to acquire Frontier Communications.

AT&T expects to significantly increase the number of AT&T Fiber customers with the deal and eventually increase its penetration of fiber customers within the acquired business from the current 25% to closer to 40%.

"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," to about 60 million fiber locations, Stankey said.

The company reiterated its full-year 2025 financial and operational guidance and share repurchase plans outlined during its 2024 investor day.

AT&T said it is still committed to repurchasing shares under its previously announced $10 billion authorization, and plans to repurchase at least $3 billion of common stock by year-end, with the remainder during 2026.

AT&T stock is up 20.5% this year through Wednesday's close, whereas the S&P 500 is down 0.6% this year.

Write to Janet H. Cho at janet.cho@dowjones.com

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May 21, 2025 16:09 ET (20:09 GMT)

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