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Google’s parent, Alphabet, has revealed that GFiber will merge with Astound Broadband, which already serves over a million customers in California, Illinois, Washington state, and more.
GFiber, formerly Google Fiber, revealed the news in a blog post, but no financial terms were disclosed. The announcement didn't mention Alphabet selling the business. Rather, the companies are framing the deal as "an agreement to combine GFiber with Astound Broadband, creating a leading independent fiber provider."
The deal might be a joint venture. In January, Bloomberg reported on talks between Alphabet and Astound’s parent, Stonepeak, to create a joint venture that would include Astound. In 2024, Alphabet was also looking for external investors to grow GFiber and eventually spin it off as an independent business, according to Reuters.
For now, Alphabet says it will hold a "significant minority” stake in the new, unnamed company. Meanwhile, Stonepeak is becoming the majority owner of the newly formed company.
The blog post also points out: “The combined business will be led by the existing GFiber executive team, utilizing their expertise in high-speed fiber innovation to manage the combined network footprint. The combination of GFiber’s high-growth metropolitan networks with Astound’s established infrastructure, team, and capabilities creates a highly complementary, national network platform.”
We reached out to both companies for more details. Stonepeak told PCMag: “We’re not providing additional details beyond the release at this time.” But Google says that GFiber will continue to do business as GFiber. The merger is slated to close in Q4.
The deal naturally raises questions about whether GFiber will face any changes. The brand has been a repeat winner in our Readers’ Choice awards for top ISP. Meanwhile, Astound says it's the "sixth largest telecommunications provider, serving eight of the top ten metro markets in the United States." Stonepeak acquired Astound in 2020 for $8.1 billion.
For now, the blog post suggests the merger will leave GFiber in a better financial position. In 2016, the business halted a fiber expansion amid layoffs before jumpstarting it again in 2022.
The companies wrote: “This agreement advances GFiber’s mission of redefining internet connectivity and represents a major step toward its goal of operational and financial independence. GFiber will have the external capital and strategic focus needed to accelerate its next phase of growth, expanding its customer-first approach and pioneering fiber technology across the country.”
Editors' Note: This story has been updated with more details about earlier merger talks.