Frontier Communications (NASDAQ: FYBR), the Dallas, TX-based pure-play fiber provider, announced on Monday that it is undertaking a formal strategic review process “of all opportunities to unlock shareholder value, including continued optimization of our operational and financing strategy, strategic partnerships, joint ventures, divestitures, mergers, and business combinations.” The company’s announcement comes after activist investor Jana Partners, in December, called for an immediate strategic review and possible sale of the company.
That overture followed Jana’s statement in October that Frontier’s depressed valuation and strong position in the fiber broadband sector would make it attractive to wireless carriers and private-equity-owned assets in the sector. Jana, on Monday, said that it supports Frontier’s “focus and review of all opportunities to unlock shareholder value” and expressed confidence in the Board and management team to achieve that goal.
Frontier also announced the appointment of Woody Young to its board, effective immediately. Young is the former chairman of mergers and acquisitions at Perella Weinberg Partners, where he also led the firm’s U.S. telecommunications and media advisory businesses. He previously served as the Co-Head of Global Telecommunications, Media, and Technology at Lazard.
The company is scheduled to report its 4Q23 and full-year 2023 results on February 23. At the end of 3Q23, Frontier reported 6.2 million fiber passings across its 25-state operating area with the goal of reaching more than 10 million fiber passings by 2025, under its Building Gigabit America initiative.
Reader Interactions