Nukemtiltheyglow
2 months ago
Stockguy;
An important consideration, read bullet #2. How I read this; Lumen maintains control of it's Infrastructure (fiber network). It's only selling it's Mass market (Home customer base).
05/21/2025 - 01:06 PM
>AT&T to acquire Lumenβs Mass Markets fiber-to-the-home business for a total consideration of $5.75 billion in cash
>Lumen retains infrastructure critical to its enterprise strategy, including its national, regional, state, and metro fiber backbone and consumer copper broadband and voice services
>Accelerates Lumen's investment in network expansion, differentiated digital platform, and network architecture innovation
>Transaction to materially reduce Lumenβs debt, improve annual cash flow, and position Lumen for additional refinancing opportunities
Nukemtiltheyglow
2 months ago
Apologies StockGuy; Lumen is selling their Fiber to the Home, this doesn't effect their AI Fiber buildout. The $5.75B cash influx should help a lot towards AI infrastructure build-out. These are two separate entities? At least that's my understanding. People at home wouldn't be connected to the AI infrastructure as businesses would be. I believe that FTTH fiber to the home is intertwined with AI infrastructure. As the "Connected" Home Networks require fiber also. I'm just guessing here that AT&T wants into AI initiatives.
Also the newer fiber Lumen is buying from Corning is "State of the Art" fiber. Bigger, better, faster. Believe me, I'm not an expert in this field. So, what I should be saying is "I don't know?" I'm in the Electric Generation Industry. The important thing to consider is staying within your core business. IMHO Lumen is heading in a different direction, concentrating on developing high speed AI networks.
Nukemtiltheyglow
2 months ago
Apologies;
my Debt to employee ratio was incorrect;
Lumen Debt to employee = $18.16B/24,000 = $756,667
Two more comparisons;
Charter Communications (CMCSA) PPS 34.45
Revenue to employee $123.7B/182,000 = $679,670
Debt to employee $99.093B/ 182,000 = $544,010
Deutsche Telekom (DTE.DE) PPS 32.01
Revenue to employee $115.1B/ 198,194 = $580,726
Debt to employee $145.15B/ 198,194 = $$732,320
Nukemtiltheyglow
2 months ago
Here's another more telling Total Debt per Employee. Draw your own conclusions
Company Total Debt Employees Debt/Employee
Lumen $13B 24,000 $541,667
AT&T $140.9B 140,000 $1,006,428
VZ $168.4B 99,400 $1,694,167
Yes, Lumen doesn't own thousands of Brick & Mortar stores, staffed by 100's of employees. It doesn't have large inventories of Phones and gadgets.
I'm thinking I need to compare it with Cable companies versus phone companies. Although it is in a niche market.
Nukemtiltheyglow
2 months ago
Here's an interesting ratio that compares Total Revenues per Employee
Company Revenues Employees Rev/Employee($) PPS
Lumen $13B 24,000 $541,667 4.25
T $122.9B 140,000 $877,850 27.52
VZ $ 135.3B 99,400 $1,361,167 43.56
Nukemtiltheyglow
3 months ago
This bodes well for Lumen tomorrow and going forward;
https://news.microsoft.com/2025/04/30/microsoft-cloud-and-ai-strength-drives-third-quarter-results/
REDMOND, Wash. β April 30, 2025 β Microsoft Corp. today announced the following results for the quarter ended March 31, 2025, as compared to the corresponding period of last fiscal year:
Revenue was $70.1 billion and increased 13% (up 15% in constant currency)
Operating income was $32.0 billion and increased 16% (up 19% in constant currency)
Net income was $25.8 billion and increased 18% (up 19% in constant currency)
Diluted earnings per share was $3.46 and increased 18% (up 19% in constant currency)
βCloud and AI are the essential inputs for every business to expand output, reduce costs, and accelerate growth,β said Satya Nadella, chairman and chief executive officer of Microsoft. βFrom AI infra and platforms to apps, we are innovating across the stack to deliver for our customers.β
βWe delivered a strong quarter with Microsoft Cloud revenue of $42.4 billion, up 20% (up 22% in constant currency) year-over-year driven by continued demand for our differentiated offerings,β said Amy Hood, executive vice president and chief financial officer of Microsoft.
Even though MSFT & LUMN are totally different companies. The Price to Sales ratio for MSFT is 3.2T (MC) divided by 261.8B (Total Rev) = 12.09, please check my math.