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AT&T to Acquire Lumen’s Consumer Fiber Business in $5.75bn Deal
May 22, 2025
AT&T has agreed to acquire Lumen Technologies’ consumer fiber operations for $5.75bn in cash. This move would mark a major expansion of AT&T’s national fiber footprint, adding about 1 million residential fiber customers and broadening its presence in key US metro areas including Denver, Las Vegas, Phoenix, Seattle, and Orlando.
Lumen is also expected to benefit, wherein it can focus on its enterprise fiber operations and invest in AI-enabling low-latency technologies. Lumen CFO Chris Stansbury noted that the proceeds from the transaction will help reduce its debt by $4.8bn and cut annual interest expenses by over $300mn, helping its credit profile. The transaction is expected to close in 1H2026.
Lumen’s 7.65% 2042s have trended higher from its recent lows of 64 cents on the dollar hit in April. They currently trade at 77.5, yielding 10.5%. The company has seen a wave of positive updates since mid-2024. More recently in March, it was upgraded by a notch to B- from CCC+ by S&P citing improved liquidity, including a $5bn agreement with Microsoft and other hyperscalers for AI data connectivity.
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