Lumen Technologies: Strategic Sale of Consumer Fiber Operations

Lumen Technologies is exploring the sale of its consumer fiber operations to reduce debt and focus on AI-enabled growth. The Monroe-based telecommunications firm's legacy business is in decline, prompting them to consider selling parts of its fiber unit valued between $6 billion to $9 billion.

Lumen Technologies is embarking on a strategic shift by exploring the sale of its consumer fiber operations in a bid to phase out its legacy mass markets business, according to sources close to the matter. As the telecommunications giant focuses on capitalizing on the burgeoning artificial intelligence sector, this move aims to reduce its significant debt while grappling with declining sales and profits from its traditional business model.

Based in Monroe, Louisiana, Lumen has engaged investment bankers at Goldman Sachs to gauge interest from potential buyers, including industry competitors. Sources, speaking under the condition of anonymity, have indicated that Lumen might also consider selling a stake in the fiber unit or entering a joint-venture agreement. The company's decision remains uncertain as discussions are still in the early phases.

Lumen's fiber business is highly valued, with estimates ranging from $6 billion to $9 billion, depending on how the deal is structured. Attempts to diversify its offerings have included securing lucrative contracts with major tech firms to provide AI connectivity services, positioning the company for long-term growth despite its current financial challenges.

(With inputs from agencies.)