San Francisco, NFAPost: Verizon announced that it acquired Frontier Communications for $20 billion, more than double Frontier’s market cap at the close of trading the night before, in a major shake up in the US consumer internet access.
Having strong offerings in internet, phone and TV services, Frontier also partnered with companies like Google and Amazon. This strategic partnership over years also offers bundle digital services or enable find new distribution channels. But Verizon’s big interest in the company is its fiber business and the fact that it extends to places that Verizon does not currently cover as well.
Originally based in Tampa, Frontier currently has 2.2 million customers across 25 states, including the lucrative market of Washington, DC. It’s building out its network and plans to touch 10 million homes by 2026, up from 7 million today.
Commenting on the acquisition, Verizon CEO Hans Vestberg said the deal is really a strategic fit for the company and will help in long run.
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,” said Verizon CEO Hans Vestberg.
