Verizon Just Made a $20 Billion Acquisition—Here's Why the Company's CEO Calls It a 'Strategic Fit' Verizon announced Thursday that it is acquiring Frontier, a leading fiber internet provider.

By Sherin Shibu Edited by Melissa Malamut

Key Takeaways

  • Verizon is acquiring Frontier, a leading fiber internet provider, for $20 billion in cash.
  • Acquiring Frontier brings Verizon’s fiber footprint to 10 million homes by 2026, an increase from the about 7 million Verizon has today.
  • Verizon expects to save at least $500 million in annual costs after the acquisition.

Verizon said on Thursday that it had entered into a definitive agreement to acquire Frontier, a leading fiber internet provider, for $20 billion in cash.

Frontier is a nearly 90-year-old telecommunications company that filed for bankruptcy in 2020 after taking on billions of dollars in debt. Frontier exited bankruptcy in 2021 with a fiber focus, and after years of effort, and $4.1 billion in investments, it has grown its customer base to 2.2 million households in 25 states. The company plans to add 2.8 million new locations for fiber connections by the end of 2026.

Verizon decided to buy Frontier to become more competitive in the fiber internet market. As of April 2022, AT&T Fiber and Crown Castle Fiber had 12.17% and 11.59% of the U.S. market respectively, compared to 10.74% for Verizon Fios.

Related: Broadband and Fiber are the Future, So What?

"The acquisition of Frontier is a strategic fit," said Verizon Chairman and CEO Hans Vestberg, in a statement. He added that the acquisition would help Verizon "deliver premium offerings to millions more customers across a combined fiber network."

Verizon chairman and CEO Hans Vestberg. Photo by Drew Angerer/Getty Images

Acquiring Frontier brings Verizon's fiber footprint to 10 million homes by 2026, an increase from the about 7 million Verizon has today.

Verizon expects to save at least $500 million in annual costs after the acquisition.

The transaction, which has been unanimously approved by the board of directors of both companies, is expected to close in about 18 months.

Related: Verizon Agreed to a $100 Million Settlement Over Allegations of Secret Fees — Here's How to Get Paid

Sherin Shibu

Entrepreneur Staff

News Reporter

Sherin Shibu is a business news reporter at Entrepreneur.com. She previously worked for PCMag, Business Insider, The Messenger, and ZDNET as a reporter and copyeditor. Her areas of coverage encompass tech, business, strategy, finance, and even space. She is a Columbia University graduate.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

JPMorgan Shuts Down Internal Message Board Comments After Employees React to Return-to-Office Mandate

Employees were given the option to leave comments about the RTO mandate with their first and last names on display — and they did not hold back.

Business News

Zillow Predicts These 10 Places Will Have the Hottest Housing Markets in 2025

Zillow predicted that the hottest housing market of 2025 will be Buffalo, New York. Here's why.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business News

'Masculine Energy Is Good': Mark Zuckerberg Tells Joe Rogan He Thinks Companies Need More Aggression

On the most recent episode of "The Joe Rogan Experience," Meta CEO Mark Zuckerberg said corporate culture has become "neutered."

Business News

'More Soul-Crushing Than Ever': Popular Hiring Platform Finds Around 20% of Its Postings Were 'Ghost Jobs'

Is that job listing too good to be true? There's a one-in-five chance that it might be.

Growing a Business

5 Risk-Taking Lessons From Founders Who Bet Big and Won

Discover the bold moves and strategic risks that catapulted these entrepreneurs to success. Learn how their fearless decisions can inspire your own path to growth.