Array completes sale of select spectrum assets to Verizon for $1.0 billion

Rhea-AI Summary

Array Digital Infrastructure (NYSE: AD) completed the sale of select spectrum licenses to Verizon for $1.0 billion, plus additional spectrum sales to T-Mobile totaling $168 million.

The board declared a special cash dividend of $11.00 per share, payable June 25, 2026, to shareholders of record on June 11, 2026. Array does not currently expect further dividends in 2026. The dividend is described as unrelated to the ongoing review of a non-binding acquisition proposal from TDS.

AI-generated analysis. Not financial advice.

Positive

• Closed spectrum license sale to Verizon for $1.0 billion
• Completed additional spectrum sales to T-Mobile totaling $168 million
• Declared $11.00 per share special cash dividend for common and Series A shares
• Special dividend record date June 11, 2026, payment date June 25, 2026
• Company indicates special dividend expected to be largely ordinary and qualified for 2026 1099-DIVs

Negative

• Company does not anticipate paying additional dividends during 2026
• Special committee has not yet made a decision on TDS non-binding acquisition proposal

Key Figures

Verizon spectrum sale: $1.0 billion T-Mobile spectrum sales: $168M Special dividend: $11.00 per share +5 more

8 metrics

Verizon spectrum sale $1.0 billion Consideration for select Array spectrum licenses

T-Mobile spectrum sales $168M Additional Array spectrum transactions completed in May 2026

Special dividend $11.00 per share Array common and Series A shares, declared June 1, 2026

Dividend payment date June 25, 2026 Payable date for Array special dividend

Record date June 11, 2026 Shareholders of record for Array special dividend

Proposal date May 7, 2026 Date of TDS non-binding proposal to acquire Array shares

700MHz band 700MHz Frequency band for part of the spectrum sold to T-Mobile

600MHz band 600MHz Frequency band for part of the spectrum sold to T-Mobile

Market Reality Check

Price: $39.11 Vol: Volume 1,488,634 is 1.22x...

normal vol

$39.11 Last Close

Volume Volume 1,488,634 is 1.22x the 20-day average of 1,219,283 shares. normal

Technical Shares at 39.11, trading below the 200-day MA of 41.44 and 20.38% under the 52-week high.

Peers on Argus

TDS slipped 0.51% while key peers showed mixed moves (e.g., PHI -1.57%, LBTYA +2...

1 Down

TDS slipped 0.51% while key peers showed mixed moves (e.g., PHI -1.57%, LBTYA +2.96%, LBTYK +2.44%, LBTYB -1.69%, VEON +0.23%). Momentum scanners only flagged LBTYA moving down, reinforcing a stock-specific reaction rather than a broad telecom move.

Historical Context

5 past events · Latest: May 21 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
May 21	Dividend declaration	Positive	-4.6%	Declared Q2 2026 dividends including $0.04 per common and Series A share.
May 11	Shareholder meetings	Neutral	-1.3%	Announced webcast details for 2026 annual shareholder meetings of TDS and Array.
May 8	Earnings results	Positive	+2.1%	Reported Q1 2026 revenue, EPS $1.11 and significant spectrum sale gains.
May 8	M&A proposal	Neutral	+2.1%	Array formed special committee to evaluate non-binding TDS proposal for remaining shares.
May 8	M&A proposal	Positive	+2.1%	TDS offered stock-for-stock merger to acquire Array’s public shares after spectrum sales.

Pattern Detected

TDS has tended to trade up on acquisition- and earnings-related news but sold off on a recent routine dividend announcement.

Recent Company History

Over the past months, TDS news centered on Array and capital actions. On May 8, 2026, TDS proposed acquiring Array’s public shares via an all‑stock merger and highlighted prior Array spectrum sales and a planned $10.40 per‑share dividend. That same day, TDS posted Q1 2026 revenue of $309.5M and diluted EPS of $1.11, with a $150.9M book gain on spectrum sales. A routine Q2 2026 common dividend of $0.04 per share on May 21 coincided with a notable price decline, showing investors reacted more favorably to strategic and M&A updates than to ordinary dividends.

Market Pulse Summary

This announcement highlights completion of Array’s spectrum monetization steps, with a Verizon sale ...

Analysis

This announcement highlights completion of Array’s spectrum monetization steps, with a Verizon sale of $1.0 billion and additional T-Mobile sales of $168M supporting an $11.00 per‑share special dividend. For TDS, which previously proposed acquiring Array’s public shares, it adds clarity on asset sales and cash distributions that were already contemplated in the May 7, 2026 non‑binding offer. Investors may focus on how the special committee’s ongoing review and any future decisions on that proposal evolve from here.

Key Terms

special dividend, spectrum licenses, 700MHz, 600MHz, +3 more

7 terms

special dividend financial

"Board declares special dividend of $11.00 per share"

A special dividend is a one-time payment made by a company to its shareholders, usually when it has accumulated excess profits or cash. It is like a bonus or a reward for investors, often signaling that the company has extra funds available. This type of dividend matters because it can indicate a company's financial health or a significant change in its cash situation.

spectrum licenses technical

"to sell a portion of the Company's retained spectrum licenses"

Spectrum licenses are government-granted rights to use specific slices of radio frequencies for wireless services, like mobile data, broadcasting, or private networks. Investors care because these licenses are limited and often essential for a company to operate or expand wireless services; securing valuable spectrum can be like owning prime real estate—it can drive revenue, reduce costs, create competitive barriers and affect a company’s growth prospects and valuation.

700MHz technical

"spectrum sales to T-Mobile totaling $168M, primarily related to 700MHz and 600MHz"

700 MHz is a slice of the radio frequency spectrum around 700 million cycles per second used to carry wireless phone and mobile broadband signals. Investors watch it because lower-frequency bands like 700 MHz travel farther and penetrate buildings better than higher frequencies, so who owns or controls this spectrum can affect a carrier’s coverage, network costs, customer experience and ultimately revenue and asset value.

600MHz technical

"spectrum sales to T-Mobile totaling $168M, primarily related to 700MHz and 600MHz"

600 MHz is a slice of the radio frequency spectrum centered around 600 million cycles per second used for wireless communications such as mobile data and broadcast signals. Investors care because control of this spectrum is like owning highways for data: lower-frequency bands travel farther and penetrate buildings better, so who holds or gains access to 600 MHz affects a telecom or media company’s coverage, customer reach, infrastructure costs and potential revenue.

1099-DIVs financial

"Array currently expects that when 1099-DIVs are issued for 2026"

1099-divs are IRS tax forms that report dividends and other distributions you received from stocks, mutual funds or other investments during the year. They matter to investors because they summarize taxable investment income and how it’s taxed — like a receipt showing what you earned and what portion may be taxed at lower or higher rates — and are used to prepare accurate tax returns.

ordinary and qualified dividend financial

"this special dividend will be largely designated as an ordinary and qualified dividend"

Ordinary and qualified dividends are two tax categories for payments shareholders receive from a company. Ordinary dividends are taxed like regular income at your normal tax rate, while qualified dividends meet specific holding and source rules and are taxed at lower long-term capital gains rates; for investors this affects the after-tax return on income stocks, like choosing between paying full price now or a discounted rate after meeting conditions.

non-binding proposal financial

"evaluation of the non-binding proposal, dated May 7, 2026, from Telephone and Data Systems"

A non-binding proposal is an offer or plan presented by one party that outlines terms they would like to pursue but does not create a legally enforceable obligation. Think of it like a detailed handshake or a draft invitation to negotiate: it signals intent and frames possible outcomes, but either side can walk away or change terms without legal penalty. Investors watch these because they can move a stock’s price by suggesting a possible deal, yet they carry higher uncertainty than formal agreements.

AI-generated analysis. Not financial advice.

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Board declares special dividend of $11.00 per share

CHICAGO, June 1, 2026 /PRNewswire/ -- Array Digital Infrastructure, Inc. (NYSE: AD) (Array^SM) today announced the successful closing of the previously announced agreement with Verizon (NYSE: VZ) to sell a portion of the Company's retained spectrum licenses for total consideration of $1.0 billion. 

Additionally, certain spectrum sales to T-Mobile totaling $168M, primarily related to 700MHz and 600MHz, were completed in May.

These transactions further the objective announced on May 28, 2024, to opportunistically monetize remaining spectrum following the sale of the T-Mobile wireless operation which closed on August 1, 2025.

Considering the closing of the Verizon and other transactions alongside current cash on hand, the Array Board of Directors has declared a special cash dividend of $11.00 per Common Share and Series A Common Share. The special dividend is payable on June 25, 2026, to shareholders of record on June 11, 2026. While future dividend declarations are subject to the Board's discretion, the Company at this time does not anticipate that any additional dividends will be paid during 2026. 

"We have made significant progress in our spectrum monetization efforts and are pleased with the value realized in this sale," said Anthony Carlson, Array President and CEO. "Further, as we have done with prior asset sale proceeds, we are returning value to our shareholders in the form of a special dividend." 

The declaration of this special dividend is unrelated to the special committee of the Array Board of Directors' evaluation of the non-binding proposal, dated May 7, 2026, from Telephone and Data Systems, Inc. (NYSE: TDS) ("TDS") to acquire all of the outstanding common shares of Array not currently owned by TDS, which was previously announced on May 8, 2026, and the special committee has not made any decision with respect to such proposal at this time.

Note
Array currently expects that when 1099-DIVs are issued for 2026, this special dividend will be largely designated as an ordinary and qualified dividend, subject to the shareholder's holding period requirements.

Advisors
Citigroup Global Markets Inc. served as lead financial advisor and Centerview Partners LLC served as financial advisor to Telephone and Data Systems, Inc. (TDS) in connection with the Verizon transaction. TD Securities (USA) LLC and Wells Fargo also served as financial advisors to TDS. Wilkinson Barker Knauer, LLP served as lead transactional and FCC regulatory counsel to both TDS and Array. In addition, Clifford Chance LLP served as regulatory advisor to both TDS and Array and Sidley Austin LLP served as legal advisor to TDS. PJT Partners LP served as financial advisor and Cravath, Swaine & Moore LLP served as legal advisor to the independent directors of Array.

About Array
Array Digital Infrastructure, Inc. is a leading owner and operator of shared wireless communications infrastructure in the United States. With over 4,400 cell towers in locations from coast to coast, Array enables the deployment of 5G and other wireless technologies throughout the country. Headquartered in Chicago, Array is approximately 82% owned by TDS. 

For more information about Array, visit: investors.arrayinc.com

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: All information set forth in this news release, except historical and factual information, represents forward-looking statements. The forward-looking statements include the statement regarding Array's expectation regarding the designation of the special dividend on 1099-DIV. This statement relies on the company's current assumptions and involves uncertainties that could cause a different result. The ultimate designation of the special dividend depends on several factors including Array's 2026 taxable income and the amount and timing of any additional special dividends issued by Array in 2026. The forward-looking statements also include the statement that the Company at this time does not anticipate that any additional dividends will be paid during 2026. The amount and timing of any dividends is subject to business, economic and other relevant factors.

View original content:https://www.prnewswire.com/news-releases/array-completes-sale-of-select-spectrum-assets-to-verizon-for-1-0-billion-302787509.html

SOURCE Array Digital Infrastructure, Inc.

FAQ

What did Array Digital Infrastructure (NYSE: AD) announce about selling spectrum to Verizon?

Array Digital Infrastructure completed the sale of select retained spectrum licenses to Verizon for total consideration of $1.0 billion. According to Array, this transaction supports its strategy to monetize remaining spectrum following the earlier sale of its T-Mobile wireless operation completed on August 1, 2025.

What additional spectrum sales to T-Mobile did Array Digital Infrastructure (AD) complete in 2026?

Array reported completing spectrum sales to T-Mobile totaling $168 million, primarily involving 700MHz and 600MHz licenses. According to Array, these sales closed in May 2026 and are part of its broader effort to opportunistically monetize remaining spectrum assets after prior divestitures.

What are the details of Array Digital Infrastructure’s (AD) $11.00 special dividend in June 2026?

Array’s board declared a special cash dividend of $11.00 per Common Share and Series A Common Share. According to Array, the dividend is payable June 25, 2026, to shareholders of record on June 11, 2026, following recent spectrum monetization transactions and existing cash on hand.

Will Array Digital Infrastructure (AD) pay more dividends after the June 2026 special dividend?

Array’s board retains full discretion over future dividends, but the company does not expect additional dividends in 2026. According to Array, while policies can change, current expectations are that this $11.00 special dividend will be the only dividend paid during the 2026 calendar year.

How does the $11.00 special dividend from Array Digital Infrastructure (AD) affect shareholders?

Shareholders of record on June 11, 2026, are scheduled to receive a $11.00 per share cash payment on June 25. According to Array, this return of capital uses proceeds and cash from spectrum sales, aligning with its stated practice of distributing asset sale proceeds to investors.

How does Array Digital Infrastructure (AD) expect the 2026 special dividend to be taxed?

Array currently expects the 2026 special dividend will be largely classified as ordinary and qualified dividend income. According to Array, this treatment will appear on 2026 1099-DIV forms, subject to each shareholder meeting applicable holding-period requirements under U.S. tax rules.

Is Array Digital Infrastructure’s (AD) special dividend connected to the non-binding acquisition proposal from TDS?

Array states the special dividend declaration is unrelated to the special committee’s review of TDS’s non-binding acquisition proposal. According to Array, the committee is still evaluating TDS’s May 7, 2026 offer and has not reached any decision regarding that potential transaction.