VZ · 10-Q · 2026Q2 · Full report
Acquisition / Partnership / Divestiture
VERIZON COMMUNICATIONS INC · 2026-07-31 · Importance 65 · Surprise 60 · In source text
Verizon completed its January 20, 2026 acquisition of Frontier for approximately $9.8 billion in cash, inclusive of $335 million of cash acquired, and assumed approximately $12.9 billion of Frontier debt at fair value. Frontier expanded Verizon's fiber broadband footprint to 31 U.S. states and Washington D.C., and Frontier and Starry contributed less than 5% of consolidated operating revenue in the quarter and six-month period. On June 28, 2026, Verizon agreed with BT and NewCo to form a 50%-owned joint venture, contributing the Verizon Contributed Business and $625 million in cash while BT contributes its international wireline connectivity and managed network services business. Verizon also completed the $1.0 billion UScellular spectrum-license acquisition on June 1, 2026 and won 82 AWS-3 licenses valued at approximately $3.2 billion, for which it paid $3.1 billion in July.
Key facts
- In June 2026 Verizon was the winning bidder on 82 spectrum licenses valued at approximately $3.2 billion in FCC Auction 113 and made additional payments totaling $3.1 billion in July 2026; timing of license issuance is subject to FCC determination. source
- During the six months ended June 30, 2026, Verizon invested $9.5 billion in acquisitions of businesses, net of cash acquired. source
- In January 2026, Verizon completed the acquisition of Frontier and the aggregate cash consideration paid at closing was approximately $9.4 billion, net of cash acquired. source
- On January 20, 2026 Verizon completed the acquisition of Frontier, expanding its fiber broadband footprint to 31 U.S. states and Washington D.C. source
- At the effective time of the Frontier merger each share of Frontier common stock was cancelled and converted into the right to receive $38.50 per share in cash. source
- At the Acquisition Date Verizon paid approximately $9.8 billion in cash, inclusive of cash acquired of $335 million, and assumed approximately $12.9 billion of Frontier's debt measured at fair value. source
- Repayments during the six months ended June 30, 2026 included approximately $12.4 billion for the principal amount of debt assumed as a part of the acquisition of Frontier. source
- In the second quarter of 2026, the net assets representing Verizon's international wireline connectivity and managed network services business (the Verizon Contributed Business) were classified as assets and liabilities held for sale and moved from the Business segment to Corporate and other. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | realized | +3.5% | The six months ended June 30, 2026 increase in Consumer fiber broadband revenue was $1.2 billion primarily due to the inclusion of… |
| liability | negative | realized | -3.1% | At the Acquisition Date Verizon paid approximately $9.8 billion in cash, inclusive of cash acquired of $335 million, and assumed… |
| liability | positive | realized | +3.0% | Repayments during the six months ended June 30, 2026 included approximately $12.4 billion for the principal amount of debt assumed as a… |
| cash | negative | realized | -3.0% | Repayments during the six months ended June 30, 2026 included approximately $12.4 billion for the principal amount of debt assumed as a… |
| cash | negative | realized | -2.8% | Net cash used in investing activities was $18,500 million for the six months ended June 30, 2026, a change of $(11,310) million versus 2025. |
| cash | negative | realized | -2.3% | During the six months ended June 30, 2026, Verizon invested $9.5 billion in acquisitions of businesses, net of cash acquired. |
| assets | positive | realized | +2.3% | During the six months ended June 30, 2026, Verizon invested $9.5 billion in acquisitions of businesses, net of cash acquired. |
| cash | negative | committed | -0.7% | In June 2026 Verizon was the winning bidder on 82 spectrum licenses valued at approximately $3.2 billion in FCC Auction 113 and made… |
| assets | positive | probable | +0.4% | In June 2026 Verizon was the winning bidder on 82 spectrum licenses valued at approximately $3.2 billion in FCC Auction 113 and made… |
| assets | unclear | realized | — | In the second quarter of 2026, the net assets representing Verizon's international wireline connectivity and managed network services… |