- US network operator Lumen Technologies is focused on its growth potential in the enterprise services market
- It has been looking to sell its Mass Markets division since late last year
- Reports suggest AT&T is in exclusive takeover talks, but the reported price tag appears to have upset Lumen’s shareholders
AT&T is in exclusive talks to potentially acquire the consumer broadband business unit of US network operator Lumen Technologies for about $5.5bn, according to Bloomberg, which noted that the talks are still ongoing and might not lead to an M&A agreement.
Lumen, which is focusing its strategy on its enterprise services portfolio, has been seeking a buyer for its Mass Markets division, which serves consumer and small business customers, since late last year: In November, CFO Chris Stansbury told attendees at the Bank of America’s Leveraged Finance Conference that while the consumer division was “a great asset”, the capital return on residential broadband investments is about nine years as opposed to the return on investment being between 18 months and three years in the enterprise services sector. As a result, Stansbury noted that the Mass Markets division is “probably better suited in somebody’s hands that has a wireless offering”.
