By Michelle Chapman, Business Writer
NEW YORK (AP) --Verizon is buying Frontier Communications in a $20 billion deal to strengthen its fiber network.
Verizon Communications Inc. said Thursday that the acquisition will also shore up its foray into artificial intelligence as well as connected smart devices.
Frontier has concentrated heavily on its fiber network capabilities over about four years, investing $4.1 billion upgrading and expanding its fiber network. It now gets more than half of its revenue from fiber products.
The price tag for Frontier, based in Dallas, is sizeable given its 2.2 million fiber subscribers across 25 states. Verizon has approximately 7.4 million Fios connections in nine states and Washington, D.C.
Frontier has 7.2 million fiber locations and has plans to build out an additional 2.8 million fiber locations by the end of 2026.
“The acquisition of Frontier is a strategic fit,” Verizon Chairman and CEO Hans Vestberg said in a prepared statement. “It will build on Verizon’s two decades of leadership at the forefront of fiber and is an opportunity to become more competitive in more markets throughout the United States, enhancing our ability to deliver premium offerings to millions more customers across a combined fiber network.”
Verizon, based in New York City, will pay $38.50 for each Frontier share. The deal is expected to close in about 18 months. It still needs approval from Frontier shareholders.
Shares of Frontier Communications Parents Inc., which were halted briefly on Wednesday after a report from the Wall Street Journal about the deal sent the stock up nearly 40%, fell 9% before the market opened on Thursday. Verizon’s stock rose slightly.
ESPN and other channels return to DirecTV with a new Disney deal after a nearly 2-week blackout
DirecTV announced Saturday it had reached a deal with Walt Disney Co. that will restore ESPN and ABC-owned stations to its service after a nearly 2-week dispute that blacked out those networks for millions of viewers across the U.S.
The end of the impasse came in time for sports fans to watch ESPN's slate of college football games on DirecTV. It also will ensure that ABC's telecast of the Emmy Awards on Sunday night will be available in more major markets where viewers subscribe to DirecTV's pay service.
ABC had been unavailable since Sept. 1 on DirecTV in several markets where the station is owned by Disney. Those were located in the San Francisco Bay Area; Fresno, California; New York; Chicago; Philadelphia; Houston; and Raleigh, North Carolina.
DirecTV's 11 million subscribers abruptly lost access to ESPN, the ABC-owned stations and other Disney-owned channels such as FX and National Geographic during the Labor Day weekend in a dispute over carriage fees and programming flexibility.
Some viewers were watching the fourth round of the U.S. Open tennis tournament when ESPN suddenly went dark and others were getting ready to watch a college football showdown between LSU and Southern California.
The impasse also kept the NFL's opening game of Monday Night Football off of DirecTV's service.
Financial details of Disney's new deal with DirecTV weren't disclosed as part of Saturday's announcement. DirecTV's payments to Disney will be based on "market-based" pricing, according to the announcement about the deal.
The agreement also will give DirecTV the ability to offer Disney's video streaming services a la carte as well as in its own bundled packages. DirecTV won the right to include ESPN's forthcoming direct-to-consumer... Read More