04:51 PM EDT, 05/21/2025 (MT Newswires) -- AT&T ( T ) said late Wednesday it has agreed to buy substantially all of Lumen's (LUMN) Mass Markets fiber internet connectivity business for $5.75 billion in cash.

The business totals about 1 million fiber customers and reaches more than 4 million fiber locations across 11 states, it said.

AT&T ( T ) said it will hold the assets in a new subsidiary after deal closing, and plans to sell a stake in the subsidiary to an equity partner that will co-invest in the business. It expects to close the transaction in H1 of 2026.

AT&T ( T ) also reaffirmed its full-year 2025 financial and operational guidance and share repurchase plans.

Separately, Lumen said the deal would reduce its debt, improve cash flow, and allow for additional refinancing opportunities.