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

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.

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.

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

Argus Jun 2 session

+1.72% close to close Open Argus

Details

News Market Reaction – TDS

On Jun 2, the first trading day after this news, TDS closed 1.72% above the previous close.

Data tracked by StockTitan Argus for the Jun 2 session.

Key Figures

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

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

Historical Context

5 past events · Latest: May 21

5 events

1. May 21

   Dividend declaration

   24h Move

   -4.6%

   Declared Q2 2026 dividends including $0.04 per common and Series A share.

2. May 11

   Shareholder meetings

   24h Move

   -1.3%

   Announced webcast details for 2026 annual shareholder meetings of TDS and Array.

3. May 8

   Earnings results

   24h Move

   +2.1%

   Reported Q1 2026 revenue, EPS $1.11 and significant spectrum sale gains.

4. May 8

   M&A proposal

   24h Move

   +2.1%

   Array formed special committee to evaluate non-binding TDS proposal for remaining shares.

5. May 8

   M&A proposal

   24h Move

   +2.1%

   TDS offered stock-for-stock merger to acquire Array’s public shares after spectrum sales.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

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.

View in glossary

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. How Rhea-AI works. 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

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

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.