Verizon Closes Deal, Boosts Frontier Communications Shares by 38%

Verizon is in advanced talks to acquire Frontier Communications in a deal that would bolster the company’s fiber network to compete with rivals including AT&T, according to people familiar with the matter.

An announcement could come this week, provided the talks don’t hit last-minute snags, the people said.

In Wednesday’s session on the New York Stock Exchange, Frontier shares jumped nearly 38%. Verizon fell 3.29%.

A deal would be notable given Frontier’s market value of more than $7 billion. The company, which has been formed through several deals over the years, provides broadband connections to about three million locations in 25 states.

Verizon, the largest wireless carrier by subscribers, has faced increasing pressure from competitors and cable companies offering discounted wireless service backed by Verizon’s own cellular network.

Verizon has its Fios-branded fiber network. AT&T has been focused on expanding its fiber network since divesting itself of its WarnerMedia assets in 2022.

Fiber mergers and acquisitions have intensified as telecom and financial companies pour capital into neighborhoods that lack high-speed broadband or offer only one internet provider, usually a cable company.

Faced with slowing wireless revenue growth, Verizon has invested in expanding its residential internet footprint. But new fiber optic construction is expensive and time-consuming, making existing broadband providers attractive acquisition targets.

T-Mobile is the only major wireless carrier that doesn’t have a major fixed-line business, although the company agreed in July to spend about $4.9 billion through a joint venture to buy Metronet, a Midwestern broadband provider.