Lumen shares surge as AT&T inks $5.75B fiber network deal

Investing.com -- Shares of Lumen Technologies Inc (NYSE:LUMN) rose 15.5% on Wednesday after AT&T Inc (NYSE:T) announced a $5.75 billion acquisition of a significant portion of Lumen’s Mass Markets fiber business. AT&T stock gained 0.2% following the news, as the company secured market share.

The deal includes approximately 1 million fiber subscribers and over 4 million fiber serviceable locations across 11 states, all of which will transition into AT&T Fiber customers. The acquisition is expected to close in the first half of 2026, pending regulatory approval.

“This transaction advances our position to be the nation’s largest, most reliable fiber internet provider,” said AT&T Chairman and CEO John Stankey. The move also supports the company’s projection to double AT&T Fiber’s availability by the end of the decade.

As part of the transaction, AT&T will create a new subsidiary called NetworkCo, which will house the fiber assets and deployment capabilities acquired from Lumen. AT&T plans to bring in an outside equity partner following the close to co-invest in NetworkCo and operate it as a wholesale, open access platform.

Some Lumen employees are expected to join AT&T or NetworkCo, ensuring operational continuity across the transitioning footprint. AT&T stated the deal will be largely immaterial to free cash flow and earnings within the first 12 to 24 months but should become accretive over time.

The acquisition aligns with AT&T’s financial goals and long-term strategic priorities, which include share repurchases and maintaining its net leverage target. The company reiterated its 2025 financial guidance and emphasized the transaction’s role in supporting job creation and economic growth in connected communities.