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Verizon agrees to pay $20 billion in cash for Frontier Communications. Frontier is largest pure fiber telecom in the US, deal will extend Fios offering to 25 more states. VZ stock sank more than 3% on Wednesday and continues to trade lower on Thursday. Dow Jones is trading nearly one percentage point lower on Thursday, performing worse than S&P 500, NASDAQ.   Verizon (VZ) shareholders have not taken kindly to the announcement that the telecom will be acquiring Frontier Communications (FYBR). Shares of VZ fell 3.4% on Wednesday when the rumors emerged and have caved another 0.4% at the time of writing on Thursday.  Meanwhile, Frontier stock rallied just under 38% on Wednesday before plunging 9.5% on Thursday when the final figure of $20 billion underwhelmed their initial hopes.  The Dow Jones Industrial Average (DJIA), of which Verizon is a member, is off 0.9% in the morning session. That performance is worse than both the S&P 500 and the NASDAQ, though both are also somewhat lower. Then again, the Dow has been weak all week. Verizon stock news Verizon will acquire Frontier for $38.50 per share in an all-cash deal that values the company at $20 billion.  Verizon says it will gain 2.2 million subscribers from Frontier via the latter’s advanced fiber offerings in 25 states. Verizon, which largely offers home and business internet services in the region spanning Virginia through New York state and Massachusetts, will expand its Fios offering in the Midwest, South and West Coast in locales that encompass a total of 31 states and Washington, D.C. In a statement Verizon said that upon closing the acquisition would immediately be “accretive to revenue and Adjusted EBITDA growth” but by year three would account for $500 million in annual run-rate cost synergies.  Frontier Communications fiber offerings (blue) extend…

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Filed under: News - @ September 5, 2024 5:26 pm