Verizon has announced the acquisition of Frontier Communications in a $20 billion deal aimed at bolstering its fiber network. This move is expected to advance Verizon’s capabilities in artificial intelligence and the Internet of Things.
Frontier Communications, based in Dallas, has significantly focused on enhancing its fiber network infrastructure over the past four years, investing $4.1 billion in upgrades and expansions. With over 2.2 million fiber subscribers across 25 states, Frontier now derives over half of its revenue from fiber products.
Verizon, headquartered in New York City, currently boasts approximately 7.4 million Fios connections in nine states and Washington, D.C., while Frontier has 7.2 million fiber locations and plans to expand by an additional 2.8 million fiber locations by the end of 2026.
Verizon Chairman and CEO Hans Vestberg described the acquisition as a strategic fit, emphasizing the potential to enhance competitiveness in various markets across the United States. The deal, priced at $38.50 per Frontier share, is anticipated to be finalized within 18 months, pending approval from Frontier shareholders.
Following reports from the Wall Street Journal about the acquisition, shares of Frontier Communications Parents Inc. surged nearly 40% on Wednesday before dropping 9% as markets opened on Thursday. Meanwhile, Verizon’s stock experienced a slight increase in value.
