What's happened
Verizon has announced a $20 billion acquisition of Frontier Communications, enhancing its fiber network capabilities. The deal, which includes a cash payment of $9.6 billion and assumption of $10 billion in debt, is expected to close in 18 months pending regulatory and shareholder approvals.
Why it matters
What the papers say
According to Ars Technica, Verizon's acquisition of Frontier is valued at $20 billion, with a significant cash component and debt assumption. The article emphasizes the strategic fit of this deal, noting that it allows Verizon to reclaim a portion of its network sold to Frontier in 2016. Axios highlights the competitive landscape, stating that this merger is part of a broader trend of telecom consolidation aimed at enhancing fiber capabilities. The Independent adds that Frontier has invested heavily in its fiber network, making it an attractive target for Verizon's expansion plans.
How we got here
This acquisition follows Frontier's bankruptcy in 2020 and its subsequent focus on upgrading its fiber network. Verizon previously sold its FiOS and DSL operations to Frontier in 2016, making this acquisition a return to its former assets.
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