TPG's Acquisition Talks for Crown Castle's Fiber Business

Investing.com — Private equity firm TPG Inc. is in advanced negotiations to acquire Crown Castle International's (NYSE: CCI) fiber business for approximately $8 billion, according to a Bloomberg report from Thursday.

Crown’s shares experienced a rise of up to 2% in aftermarket trading, although some of these gains were subsequently reduced.

The announcement of a deal for the fiber unit could occur in the coming weeks, as per the report; however, no final decision has been reached, and it's possible that other buyers may appear.

This news follows Crown Castle's decision to review the fiber business in 2023, part of a commitment to enhance shareholder returns alongside activist investor Elliott Investment Management.

Selling the fiber unit would enable Crown Castle to concentrate more on its core towers business, which encompasses around 40,000 towers across the U.S.

In addition, TPG has a history of investing in media and telecom, notably acquiring AT&T Inc's (NYSE: T) remaining 70% stake in DirecTV last September for close to $8 billion.