Key Stats for Lumen Stock
- Today’s Price Change: 11%
- Current Share Price: $4
- 52-Week High: $10
- LUMN Stock Price Target: $5
What Happened?
Lumen (LUMN) stock is experiencing significant upward momentum following the announcement that AT&T has agreed to acquire all of Lumen’s Mass Markets fiber business for $5.75 billion in an all-cash transaction.
The deal includes approximately 1 million fiber subscribers across more than 4 million fiber locations spanning 11 states, including major metropolitan areas such as Denver, Las Vegas, Minneapolis-St. Paul, Orlando, Phoenix, Portland, Salt Lake City, and Seattle.
The transaction represents a strategic move by AT&T to accelerate its fiber expansion plans. CEO John Stankey stated, “We’re leading the race to connect more Americans with fiber, the best broadband connectivity technology available.”
Under the agreement, Lumen will provide transitional services for approximately two years after closing, covering field operations, network deployment, IT systems, billing, and customer support.
The deal is expected to close in the first half of 2026, subject to Department of Justice approval and other customary closing conditions.
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What the Market Is Telling Us
The positive reaction to LUMN stock reflects investor relief that the company is monetizing a significant portion of its fiber assets at what appears to be an attractive valuation.
The $5.75 billion all-cash transaction provides Lumen with substantial liquidity, which it could use to reduce debt, invest in remaining core business operations, or return capital to shareholders.
Notably, the deal excludes Lumen’s enterprise fiber customers and Mass Markets copper-based customers, allowing the company to retain these revenue streams.
The market appears optimistic about Lumen’s ability to focus on its remaining assets while benefiting from the substantial cash infusion.
The two-year transitional services agreement also provides ongoing revenue opportunities as AT&T integrates the acquired assets.
However, investors should note that Lumen will lose a sizeable portion of its consumer fiber business, which could impact long-term growth prospects.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
