Verizon to buy Frontier in $20B deal
FILE-A person speaks with an employee at a Verizon Communications Inc. store in San Francisco, California. (David Paul Morris/Bloomberg via Getty Images)
Verizon is buying Frontier Communications in a massive $20 billion deal.
The New York-based company tells the Associated Press that the acquisition of Frontier will help bolster its endeavors with artificial intelligence and connected smart devices.
Frontier Communications has 2.2 million fiber subscribers in 25 states, while Verizon has 7.4 million Fios connections in nine states and Washington, D.C.
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The AP reported that Frontier has 7.2 million fiber locations, and the Dallas-based telecommunications company is planning to build an extra 2.8 million fiber locations by the end of 2026.
Verizon is going to pay $38.50 for each Frontier Communications share. This deal is projected to close in 18 months, but still must be approved by Frontier shareholders.
According to the AP, shares of Frontier Communications Parents Inc., which were temporarily stopped Wednesday after a Wall Street Journal report about the business deal increased the stock almost 40%, dropped 9% on Thursday, while Verizon’s stock declined a bit too.