Frontier All-Cash Takeover by Verizon May Come Thursday, Bloomberg Says

Exclusive Talks Held Monday

Frontier Communications Corp. and Verizon Communications Inc. held exclusive talks on Monday, April 11, 2023, regarding a possible all-cash takeover, according to people familiar with the matter.

Verizon declined to comment. Frontier didn't immediately respond to requests for comment.

Deal Could Come This Week

The two companies could reach a deal as early as this week, the people said, cautioning that talks could still fall apart. A deal would likely value Frontier, including debt, at more than $10 billion, the people said.

The potential deal comes as Frontier has been struggling with high levels of debt and declining revenue.

Frontier's Debt

Frontier had about $17 billion in outstanding debt as of Dec. 31, 2022.

The company's debt has been a major drag on its earnings, and Frontier has been struggling to reduce it.

Frontier's Revenue

Frontier's revenue has been declining in recent years as more and more customers switch to cable and fiber-optic networks.

In 2022, Frontier's revenue fell by 5% to $4.6 billion.

Verizon's Acquisition Strategy

Verizon has been on an acquisition spree in recent years, buying up smaller telecom companies to expand its reach.

In 2022, Verizon acquired Tracfone, a prepaid wireless provider, for $6.9 billion.