Verizon to Acquire Starry, Boosting Urban 5G Broadband Reach
Strategic purchase of fixed wireless provider aims to accelerate high-speed internet expansion in major US cities.
Verizon Communications Inc. (VZ) is set to acquire Starry, a fixed wireless broadband provider, in a strategic move to accelerate the expansion of its high-speed internet services in dense urban markets. , the telecommunications giant will absorb Starry’s technology and customer base, aiming to significantly bolster its competitive stance in the home and business broadband sector.
The deal centers on leveraging Starry’s innovative millimeter wave (mmWave) technology to enhance Verizon's Fixed Wireless Access (FWA) offerings, particularly for multi-dwelling units (MDUs) in major metropolitan areas. Starry currently serves around 100,000 customers across Boston, New York, Los Angeles, Denver, and Washington D.C. For Starry, the acquisition marks a new chapter after the company , having struggled financially after its 2022 IPO.
While the , Verizon has set ambitious targets, stating the deal will help it nearly double its fixed wireless subscribers to between 8 and 9 million by 2028. The transaction is expected to close by the first quarter of 2026, subject to regulatory approval from the Federal Communications Commission (FCC).
Market reaction was modestly positive, with Verizon's stock seeing a slight 0.5% uptick in premarket trading following the news. In light of the deal, , pointing to a healthy Piotroski F-Score of 7. However, they also highlighted the company's moderate leverage and an Altman Z-Score that suggests some underlying financial risk. This acquisition represents a calculated bet by Verizon to capture a larger share of the urban broadband market, leveraging Starry's focused infrastructure to fast-track its growth.