AT&T has finalized an agreement to acquire Lumen Technologies' consumer fiber operations for $5.75 billion in cash. This acquisition will significantly expand AT&T's national fiber footprint and add 1 million fiber customers. Lumen's shares saw a 13% increase in after-market trading following the announcement of the sale.

The deal will enable AT&T to enhance its fiber-network operations in key cities such as Denver, Las Vegas, Minneapolis-St. Paul, Orlando, Phoenix, Portland, Salt Lake City, and Seattle. The transaction is expected to be completed in the first half of 2026, after which the acquired assets and related capabilities will be placed in a new subsidiary, where AT&T plans to sell a minority stake.

For Lumen, this sale allows the company to concentrate on growing its enterprise fiber business and investing in low-latency technology, which is crucial for supporting artificial intelligence workflows. Lumen Chief Financial Officer Chris Stansbury noted that customers are increasingly demanding faster services to meet their needs in a multi-cloud, AI-first world.

The cash proceeds from the sale will help Lumen reduce its debt by $4.8 billion and improve cash flow by decreasing interest expenses by more than $300 million annually.