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Verizon Communications Inc. announced a significant agreement to pay around $20 billion to buy Frontier Communications. Verizon's fiber network would be significantly expanded under the deal, which was made public on Thursday, September 5, and includes $9.6 billion in cash.
Verizon to Expand Fiber Network
Frontier Communications has around 2.2 million fiber users and runs a fiber network across 25 states, according to AP News. With a subscriber base of over 7.4 million, Verizon, based in New York City, now provides fiber service under the Fios brand in nine states as well as Washington, DC.
Frontier has spent $4.1 billion improving and expanding its fiber network during the last four years. By the end of 2026, the business plans to add 2.8 million more fiber sites, increasing its total to 7.2 million. Verizon will integrate its current network with Frontier's through this acquisition, reaching a potential customer base of 25 million locations. This
Through the agreement, Verizon will be able to provide enhanced services and high-speed internet with an improved fiber infrastructure. The boards of Verizon and Frontier agreed to approve the merger, but regulators and Frontier's shareholders still need to give their approval.
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Frontier Set to Transform Fiber Network and Service
Frontier has received a cash offer from Verizon of $38.50 per share, and the merger is expected to be completed in around 18 months, USA Today reported.
Verizon, which currently operates in the Northeast and Mid-Atlantic areas, aims to incorporate Frontier's fiber network into its own. Verizon will be able to provide its services to more areas in the Midwest, Texas, and California owing to this expansion.
With this acquisition, Verizon also hopes to strengthen its place in connected smart devices and artificial intelligence. Frontier's shares dropped by 9%, despite the deal's positive outlook.
There was also a little decrease in Verizon's stock price. However, both businesses are still dedicated to seeing the deal through.
Verizon's acquisition of Frontier is expected to provide users with more options, including mobile, home internet, streaming, and linked home services, in addition to improving its fiber network. Through the Verizon purchase, Frontier will be able to better serve millions of consumers nationwide and increase its market impact.
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