AT&T Bets $5.75 Billion on Fiber Expansion

Telecom giant AT&T doubled down on its fiber internet strategy on Wednesday with a $5.75 billion deal to acquire Lumen's Mass Markets fiber business.

Telecom giant AT&T (T) has expanded its fiber internet strategy with a significant acquisition. On Wednesday, AT&T agreed to buy Lumen Technologies' (LUMN) Mass Markets fiber internet connectivity business for $5.75 billion in cash [1]. The deal is expected to close in the first half of 2026.

The acquisition aims to enhance AT&T's high-speed fiber internet network, adding around 1 million new fiber customers and reaching over 4 million fiber locations across 11 U.S. states. AT&T CEO John Stankey highlighted the strategic importance of this move, stating, "We're leading the race to connect more Americans with fiber, the best broadband connectivity technology available" [1].

Prior to the acquisition, AT&T had plans to reach approximately 60 million total fiber locations by the end of 2030, which would nearly double the current number of available fiber locations. This deal is expected to accelerate that timeline.

The news has had a positive impact on Lumen's share price, with the stock jumping 14% in premarket trading on Thursday, despite entering the year down almost 30% [1]. AT&T's shares, which had started the year up by 20%, remained relatively unchanged following the announcement.

This acquisition is a significant move for AT&T, positioning the company to strengthen its competitive edge in the high-speed internet market. The deal aligns with AT&T's broader strategy to expand its fiber network and enhance its broadband services.

References:
[1] https://www.investopedia.com/att-agrees-to-buy-lumen-technologies-mass-markets-fiber-internet-business-for-usd5-75b-11739833