Buyout firm TPG is reportedly in advanced discussions to acquire the fiber unit of Crown Castle, a telecom tower operator, for approximately $8 billion, according to news reports from Reuters and Bloomberg.
Houston, Texas-based Crown Castle owns, operates and leases more than 40,000 cell towers and approximately 90,000 route miles of fiber supporting small cells and fiber solutions across every major U.S. market.
Shares of Crown Castle rose by 2.1 percent in after-hours trading following the news.
Reuters had earlier reported that TPG and fiber network owner Zayo Group were both interested in Crown Castle’s fiber and wireless assets.
The acquisition, if finalized, would come amid increased merger activity in the fiber broadband sector, driven by rapid industry growth. Companies like Crown Castle, with strong infrastructure assets, are becoming attractive targets for investors.
Crown Castle has been exploring strategic options for its fiber assets following an agreement with activist investor Elliott Investment Management to restructure its board. Earlier this year, Crown Castle co-founder Ted Miller suggested that the company’s fiber assets could be valued at up to $15 billion.
Crown Castle is expecting capital expenditure of $1.2 billion – $1.3 billion, including approximately $1.1 billion in the fiber segment and $180 million in the telecom towers segment in 2024.
Baburajan Kizhakedath
