AT&T Buys Lumen’s Consumer Fiber Business for $5.75 Billion

Michelle F. Davis

Thu, May 22, 2025, 8:50 AM 3 min read

(Bloomberg) -- AT&T Inc. agreed to buy the consumer fiber operations of Lumen Technologies Inc. for $5.75 billion, expanding its fast broadband service in major cities like Denver and Las Vegas.

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AT&T will pay cash for the unit of Lumen, according to a statement Wednesday. Talks between the companies were reported earlier by Bloomberg News. The sale is subject to regulatory approval and is expected to close in the first half of next year.

The deal helps AT&T increase its long-term goal of putting its fiber-optic lines within reach of more homes and businesses. The Dallas-based wireless and broadband company now says it aims to reach 60 million locations by 2030, about double where AT&T Fiber is available today. Lumen had said earlier that the consumer fiber business didn’t fit with its focus on serving enterprise customers.

Lumen has 1 million fiber customers and reaches more than 4 million locations across 11 US states, AT&T said.

Lumen shares gained 1.3% on Thursday in New York. AT&T was little changed.

As part of the transaction, AT&T will form a new subsidiary that will hold the acquired assets. After closing, AT&T plans to sell partial ownership of the subsidiary to an equity partner that will co-invest in the business. AT&T expects to identify the partner and close a deal within about six to 12 months of completing the transaction with Lumen.

AT&T said the structure will help support the expansion of AT&T Fiber outside of the phone giant’s traditional landline operations.

Chief Executive Officer John Stankey said President Donald Trump’s signature tax bill, which was narrowly approved in the House on Thursday morning, will help stimulate investment in fiber-optic technology.

“We’ll be taking that benefit on the tax side and increasing the pace of fiber investment in our business,” Stankey said in an interview on Bloomberg Technology.

Fiber is the best technology to handle the increased demand for data consumption and work loads, Stankey said, noting that AT&T has a “big lead” in the market today. With the Lumen acquisition, AT&T will not only reach communities where it was under-invested in fiber, but also where it’s under-penetrated in wireless customers as well.