Verizon Communications Inc. has announced an agreement to acquire rival telecommunications operator Frontier Communications Parent Inc. for an enterprise value of $20 billion. This acquisition is set to significantly enhance Verizon’s high-speed internet service capabilities at a time when internet usage is witnessing a substantial increase due to the growing trend of video streaming and data consumption.
According to the joint press release, investors of Frontier Communications will receive $38.50 per share in cash, representing a 37% premium to Frontier’s closing price of $28.04 the day before the news broke. Additionally, Frontier holds approximately $11 billion in debt, which will also be addressed as part of the deal. Further details can be read in the original article.