New York, Feb 2, 2026, 09:18 (ET) — Premarket
- AT&T finalizes $5.75 billion all-cash acquisition of Lumen’s mass-market fiber business
- Boosts fiber subscribers by over 1 million and expands fiber coverage to more than 4 million locations in 11 states
- Attention shifts to speeding up integration, ramping up build pace, and boosting bundling gains
AT&T shares jumped about 4.3% in Monday’s premarket session after confirming the $5.75 billion acquisition of Lumen Technologies’ mass-market fiber business. The stock traded at $26.21, gaining $1.09 since Friday’s close. The deal brings AT&T over 1 million fiber subscribers and expands its footprint to more than 4 million fiber locations in 11 states. (AT&T Newsroom)
Why it matters now: AT&T is ramping up its push into fiber broadband—a capital-intensive play that can pay off with more loyal customers after installation. Fiber-to-the-home installs fiber-optic cables straight into residences, usually providing faster, steadier speeds than traditional copper wiring.
The company is pushing bundles too, pairing home internet with 5G wireless. U.S. telecoms are aiming for steadier growth and to cut churn, even as they keep investing heavily in their networks.
AT&T CEO John Stankey announced that AT&T Fiber “will be available to millions more people” as the company expands its footprint across 32 states. The firm expects fiber penetration to rise from about 25% in the newly acquired markets, targeting over 60 million total fiber locations by the end of 2030. (PR Newswire)
Lumen announced it is selling its consumer fiber-to-the-home business across 11 states, including Quantum Fiber. The deal also includes the consumer access network and customer accounts in those areas. “We are doubling down on where we are strongest,” Lumen CEO Kate Johnson said. (SEC)
On Monday, Lumen announced plans to use roughly $4.8 billion from proceeds and available cash to redeem or repay multiple tranches of secured notes and term loans. (SEC)
AT&T stuck to the guidance it shared with its fourth-quarter results on Jan. 28, targeting adjusted EPS between $2.25 and $2.35 for 2026, alongside free cash flow of at least $18 billion. The company also revealed plans to place the acquired fiber network assets into a wholly owned subsidiary, while selling a partial stake to an equity partner. (AT&T Newsroom)
AT&T will distribute a quarterly dividend of $0.2775 per share on Monday, maintaining a steady cash flow while pushing ahead with its fiber network expansion. (AT&T Investor Relations)
The expanded fiber footprint pushes AT&T into closer contention with cable companies for home broadband subscribers. Verizon and T-Mobile still lead in the wireless arena. The goal remains unchanged: hold onto customers and cross-sell multiple services.
But the deal isn’t without risks. AT&T must migrate customers, integrate systems, and maintain consistent service quality while expanding construction into new areas — all amid a telecom pricing landscape that can change quickly.
Investors are eager for updates on the integration process and a timeline for onboarding an equity partner in the fiber unit. Lumen plans to address the sale during its earnings call on Feb. 3, potentially providing more clarity on the handover and transition details. (Lumen)
