UPDATE Frontier Communications Parent, Inc. (NASDAQ: FYBR) yesterday announced that its stockholders approved the acquisition by Verizon Communications Inc. (NYSE, NASDAQ: VZ) at its special meeting held on November 13, 2024. Approximately 63 percent of stockholders voted for the merger agreement proposal, with 10 of the company’s top 12 stockholders voting to approve the transaction. Inside Towers reported on October 28, that Frontier’s management urged its stockholders to OK the buyout with claims Verizon’s offer surpassed any alternative, including Frontier’s own growth plans, as the most favorable choice for maximizing shareholder value.
“While we think Frontier should have received more,” Jonathan Chaplin of NewStreet Research said, “we recognize that most large shareholders will lock in a very substantial gain while removing uncertainty with this transaction. This is a strong win for Verizon, who will secure a great asset at a great price.”
On September 5, 2024, Frontier and Verizon announced they had entered into a merger agreement, in which Verizon would acquire Frontier in an all-cash transaction. Frontier stockholders will receive $38.50 per share in cash, representing a premium of 37 percent to Frontier’s unaffected share price on September 3, 2024. The transaction is expected to close by the first quarter of 2026, subject to regulatory approvals.
“Today’s vote demonstrates the strong value of the fiber business we have built over the past four years and our ability to expand access to reliable connectivity for more Americans,” said Nick Jeffery, President and Chief Executive Officer, Frontier. “We look forward to closing this transaction by the first quarter of 2026 and beginning to deliver our premium fiber offering to millions more customers across our combined network.”
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