Google parent Alphabet is maintaining a minority stake into the new entity, but GFiber executives will lead it. Astound’s parent, the investment firm Stonepeak, will hold the majority stake.
Google’s parent Alphabet has revealed that GFiber is being merged with the internet service provider Astound Broadband, which already serves over a million customers in states including California, Illinois and Washington state.
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. Back in January, Bloomberg reported on talks between Alphabet and 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 into an independent business, according to Reuters.
For now, Alphabet has said it’ll hold a “significant minority” stake in the new, unnamed company. Meanwhile, Astound’s parent, the New Jersey-based investment firm Stonepeak, is becoming 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.”
