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Time to Buy AT&T ($T) and Sell $LUMN ?
@JC888：
On Wed, 26 Mar 2025 when US market was crashing across the board, $AT&T Inc(T)$ rose (+1.24%) instead. What happened ? Apparently, rumour has it that AT&T is in talks to acquire $Lumen Technologies(LUMN)$ consumer fiber-optic network business (only) for $5.5 billion. YTD (in 2025), AT&T stock has advanced +21.11%, as of 26 Mar 2024. (see above) This comes about as the Telco giant focuses on its "convergence" push — selling landline broadband and wireless services in product bundles. According to Bernstein Research, Analyst, Laurent Yoon: AT&T would be acquiring LUMN’s fiber optic network assets at a good price. The acquisition could be a beneficial opportunity for AT&T, aligning with its core strengths. Alternatively, there might be additional aspects to the deal that are not immediately obvious. Looking Back. On Mon, 24 Mar 2025 afternoon, when Bloomberg first reported the talks: LUMN shares felll -9.5%. (see above), as investors reacted to the deal's price tag. AT&T rose by +1.3% to $27.31 instead. On Wed, 26 Mar 2025, LUMN continued its descend by another -5.23% to $4.17 per share, AT&T meanwhile, rose yet again by +1.24% to end the day at $27.65 per share. Broadband Growth. At the end of September 2024, AT&T had approx. 18.5 million homes under its broadband network. It plans to expand its fibre-optic network to 30 million+ homes and businesses by end 2025. By acquiring LUMN, where it’s consumer broadband network count that passes 4 million homes will be added inorganically to AT&T, helping it to achieve its 30 million homes cum businesses. For the record. In 2023, AT&T and $BlackRock(BLK)$, the world's largest asset manager, formed a joint venture to expand fiber-optic network services called Gigapower. So far, Gigapower has shown promising results: Expansion Plans: AT&T and BlackRock are looking to grow Gigapower beyond the initially announced 1.5 million locations. Geographic Growth: Gigapower is expanding its fiber deployment beyond Mesa to include Chandler and Gilbert areas (Arizona), as well as parts of Northeastern Pennsylvania, Alabama, and Florida Regarding LUMN takeover, JPMorgan, Analyst - Sebastiano Petti said: He believed AT&T's potential acquisition of Lumen's assets is justified. He notes that AT&T can quickly increase its customer base and improve profit margins with these assets. Exact details of the deal, such as whether AT&T is buying Lumen's copper network or involving partners like its Gigapower joint venture, are not yet clear. Petti feels that at the current valuation, the deal carries low risk for AT&T. AT&T has underperformed for a while since its 2021 peak, here’s hoping nothing will stop it from its rise; not even Trump’s tariffs that is so damaging domestically and internationally. Must Read: Click on below titles to access. Repost to share, Like as encouragement ok. Thanks. RKLB vs SpaceX : Space's new Supreme Leader ? FFAI - Cockroach stock that never dies ! NVDA Rises Week After GTC Conference ? Do you think AT&T will be able to acquire LUMN without antitrust concerns ? Do you think LUMN stock will continue to fall today ? If you find this post interesting, give it wings! ️ Repost and share the insights ? Do consider “Follow me” and get firsthand read of my daily new post. Thank you. @Daily_Discussion @TigerPM @TigerStars @Tiger_SG @TigerEvents
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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