Verizon making $20B fiber buy, Topgolf and Fortive splitting up: Morning Buzz

Big Telecom Spends Big Bucks

Verizon is spending $20 billion to buy the fiber assets of fiber optic network operator, XO Communications. The deal will give Verizon a major boost in its quest to build out its own fiber network, which it sees as essential for delivering high-speed internet and other advanced services to its customers.

The deal is a major coup for Verizon, which has been investing heavily in its fiber network in recent years. The company has already spent more than $50 billion on its fiber buildout, and the XO Communications acquisition will add another 17,000 miles of fiber to its network.

The XO Communications acquisition is the latest in a series of deals that Verizon has made to expand its fiber network. In 2021, the company acquired fiber assets from Frontier Communications for $10.5 billion. And in 2022, it acquired fiber assets from Lumen Technologies for $7.5 billion.

Topgolf and Fortive Splitting Up

Topgolf and Fortive are splitting up after nearly a decade together. Topgolf, the popular golf entertainment company, will become a private company, while Fortive, the industrial technology company, will continue to trade publicly.

The split is the result of a strategic review that the two companies launched last year. The review concluded that the two companies have different strategic priorities and that they would be better off operating independently.

Topgolf has been a major growth driver for Fortive in recent years. In 2022, Topgolf generated $1.3 billion in revenue, up 20% from the previous year. However, Fortive has been looking to focus more on its industrial businesses, which include businesses that make sensors, pumps, and other industrial products.

The split will allow Topgolf to focus on its growth strategy, while Fortive will be able to focus on its industrial businesses. Both companies are expected to benefit from the split in the long run.