AT&T Buys Lumen’s Fiber Unit for $5.75 B, Gains 1 M Subscribers
AT&T completed its $5.75 billion all-cash acquisition of Lumen’s Mass Markets fiber unit on Feb. 2, adding over one million fiber subscribers and infrastructure in 32 states. RBC Capital raised its price target from $29 to $31 and maintained a Buy rating, while Barclays kept a Hold at $26.
1. Transaction Details
AT&T completed its acquisition of Lumen’s Mass Markets fiber business for $5.75 billion in cash on February 2, adding over one million existing fiber subscribers and fiber assets across 32 states.
2. Strategic Rationale
Management expects the deal to accelerate AT&T’s fiber rollout beyond its core regions, advancing the goal of reaching more than 60 million passable locations by 2030 and improving long-term growth prospects.
3. Analyst Reactions
RBC Capital raised its price target from $29 to $31 and upheld a Buy rating, citing increased free cash flow potential, while Barclays maintained a Hold rating with a $26 target.
4. Competitive Impact
The expanded fiber footprint strengthens AT&T’s position against wireless competitors, enabling faster copper asset phase-out, reduced maintenance costs, and enhanced infrastructure scale.