Frontier Communications Asks Shareholders to Accept Verizon's Takeover Bid

Frontier Communications, a telecommunications company serving rural areas of the United States, has asked its shareholders to accept a takeover bid from Verizon Communications.

The deal, which was announced in December 2022, would see Verizon acquire all of Frontier's outstanding shares for $10.53 per share, or a total of approximately $10.5 billion.

Frontier's board of directors has unanimously recommended that shareholders vote in favor of the transaction. The deal is expected to close in the second half of 2023, subject to shareholder approval and regulatory approvals.

If the deal is approved, Verizon would gain access to Frontier's extensive fiber-optic network, which spans 10 states in the western United States. Verizon would also acquire Frontier's 3 million broadband customers, 1.2 million voice customers, and 1 million video customers.

The acquisition would give Verizon a stronger presence in rural areas, where it currently has a limited footprint. It would also allow Verizon to expand its fiber-optic network, which is seen as a key infrastructure for the future of broadband internet access.

For Frontier, the deal would provide a much-needed financial boost. The company has been struggling with debt for several years, and the sale to Verizon would allow it to pay down its debt and invest in its network.

The deal has been met with mixed reactions from analysts. Some analysts believe that the deal is a good move for both Frontier and Verizon, while others believe that Verizon is overpaying for Frontier.

The deal is still subject to shareholder approval and regulatory approvals, so it is possible that it could fall through. However, if the deal is approved, it would be a major shakeup in the telecommunications industry.