Lumen Technologies (LUMN) stock surged 16.27% in pre-market trading on Thursday following the announcement of a significant deal with AT&T. The telecommunications giant has agreed to acquire Lumen's mass markets fiber business for $5.75 billion in cash, a move that has sparked investor enthusiasm.

The deal, which is expected to close in the first half of 2026, will see AT&T take over approximately 1 million Lumen fiber subscribers across more than 4 million locations. These customers will transition to become AT&T Fiber customers, significantly expanding AT&T's fiber network operations in key metropolitan areas including Denver, Las Vegas, Minneapolis-St. Paul, Orlando, Phoenix, Portland, Salt Lake City, and Seattle.

For Lumen Technologies, this transaction represents a strategic shift, allowing the company to focus on growing its enterprise fiber business and invest in low-latency technology critical for supporting artificial intelligence workflows. The sale is also expected to have positive financial implications for Lumen, with the company anticipating using the cash proceeds to reduce its debt by $4.8 billion and improve cash flow by cutting interest expenses by more than $300 million annually. This financial restructuring has clearly resonated with investors, as reflected in the substantial pre-market stock price increase.