Telephone and Data Systems stock rises after dropping Array deal

Telephone and Data Systems (TDS) stock experienced a 6.8% increase on Wednesday after the company decided to drop its plan to acquire the remaining minority stake in Array Digital Infrastructure (AD). TDS announced it would no longer pursue the acquisition of Array's common shares and had withdrawn its previously proposed exchange rate.

The deal would have involved exchanging each Array common share not owned by TDS for 0.86 of a TDS common share. TDS will retain its approximately 82% ownership interest in Array. CEO Walter Carlson stated that while the combination presents substantial benefits, the company believed it was not the right time to complete the transaction.

Despite thorough reviews on both sides, TDS and Array could not agree on the terms of consideration and value. The company plans to resume repurchases of its common shares under its announced share repurchase programs, including an additional $500 million authorization from November 2025. As of June 30, 2026, approximately $523.9 million was still available for these programs.

TDS remains committed to supporting Array's plans to monetize its remaining wireless spectrum assets, with both companies aiming to increase efforts in this area in the near future. Array is a major owner and operator of shared wireless communications infrastructure in the U.S., with over 4,400 cell towers. TDS offers broadband services and wireless infrastructure through its TDS Telecom and Array Digital Infrastructure businesses.