AT&T is reportedly in exclusive talks to acquire Lumen Technologies' consumer fiber operations, according to Bloomberg News, citing sources familiar with the matter. The potential deal is valued at more than $5.5 billion.
This divestiture would allow Lumen to further phase out its legacy mass markets business and concentrate on its enterprise technology segment, which includes networking and security. Lumen's Chief Financial Officer, Christopher Stansbury, previously indicated significant interest in the fiber business, noting it is the largest asset of its kind available.
The transaction, if finalized, would be a major step in Lumen's ongoing transformation strategy to reduce its substantial debt pile and enhance financial flexibility. The company's fiber broadband business currently serves 1.1 million subscribers as of the fourth quarter.
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