Verizon to sell both fixed-line and towers in deals totalling $15.6 billion
Verizon is to sell both its fixed-line assets and mobile towers in two separate deals for a total of $15.6 billion.
Frontier Communications is purchasing Verizon’s fixed-line assets across California, Florida and Texas for $10.54 billion in cash. The deal includes 3.7 million voice connections, 2.2 million broadband connections and 1.2 million FiOS TV subscribers.
In a separate deal, Verizon will lease 11,324 mobile towers to Boston-based American Tower and sell 165 more for a total of $5.056 billion in cash. American Tower will have the right to lease and operate the towers for approximately 28 years.
The deals will go towards the payment of over $10 billion of spectrum Verizon acquired last week in a US auction. The carrier will also use some of the divesting assets to reduce debt and repurchase $5 billion in stock.
Subject to regulatory approval, the transaction with American Tower is expected to close in the first half of 2015, and the deal with Frontier in the first half of next year.