Verizon Agrees to Acquire Frontier for $20 Billion

Verizon has announced its acquisition of Frontier Communications for $20 billion in an all-cash deal, marking a significant move in the telecommunications sector. This acquisition will enhance Verizon's fiber footprint by integrating Frontier's 2.2 million fiber subscribers and expanding its reach to 25 million homes across 31 states. The deal, valued at $38.50 per share, represents a 43.7% premium over Frontier's recent trading prices and is expected to generate at least $500 million in annual cost synergies within three years. As Verizon aims to bolster its Fios fiber network amid slowing wireless revenue growth, this strategic fit is seen as a way to remain competitive and deliver premium offerings. The acquisition has been unanimously approved by both companies' boards and is anticipated to close in approximately 18 months, pending regulatory and shareholder approvals. Frontier's ongoing investments in its fiber network further position the combined entity for growth in the evolving digital infrastructure landscape.