By Milana Vinn and Rishi Kant
(Reuters) – Buyout firm TPG is in advanced talks to buy tower operator Crown Castle’s fiber optic unit for about $8 billion, a person familiar with the matter said.
Shares of Houston, Texas-based Crown Castle rose 2.1% in after-hours trading.
A deal for the fiber and wireless units could be announced within weeks, the source said.
However, the source added that while no final decision has been made, talks could fail or another buyer could emerge.
The development was first reported by Bloomberg News.
TPG was vying with fiber network owner Zayo Group for Crown Castle’s fiber and wireless assets, Reuters reported in October, citing people familiar with the matter.
If the talks are successful, the deal would come at a time when mergers in the fiber optic industry are becoming increasingly popular.
With the rapid growth of fiber broadband driving business for infrastructure providers, companies like Crown Castle are seen as attractive acquisition targets.
Spokespeople for TPG and Crown Castle declined to comment.
The development comes as Crown Castle is exploring options for its fiber assets after reaching a deal with activist investor Elliott Investment Management over a board shake-up.
Crown Castle co-founder Ted Miller had told Reuters in February that the company could raise as much as $15 billion by selling its fiber assets if he and his partners joined the board of directors.
(Reporting by Rishi Kant in Bengaluru and Milana Vinn in New York; Editing by Shreya Biswas)
