TELEPHONE & DATA SYSTEMS INC /DE/ Reports Material Event

Rhea-AI Filing Summary

Telephone and Data Systems, Inc. (TDS) reported that its subsidiary Array Digital Infrastructure, Inc. (formerly United States Cellular Corporation) completed the previously announced sale of select wireless spectrum assets to AT&T for $1.018 billion in cash on January 13, 2026. Of this amount, $232 million was allocated to 700 MHz spectrum licenses held by entities now wholly owned by Array, and the entire purchase price was received at closing with no portion deferred.

On the same day, Array’s board declared a special cash dividend of $10.25 per share for holders of its Common Stock and Series A Common Stock of record on January 23, 2026, with payment scheduled for February 2, 2026. As of January 13, 2026, TDS held 33,005,877 shares of Array Series A Common Stock and 37,782,608 shares of Array Common Stock.

Insights

Telecom equity analyst

Array monetizes spectrum for $1.018B and funds a $10.25 special dividend.

Array Digital Infrastructure, Inc., a subsidiary of Telephone and Data Systems, Inc., completed the sale of select spectrum assets to AT&T for $1.018 billion in cash. The transaction includes $232 million tied to 700 MHz licenses held by entities now fully owned by Array, and the full consideration was paid at closing, with no deferred component mentioned in the excerpt.

Following the sale, Array’s board declared a special cash dividend of $10.25 per share on both its Common Stock and Series A Common Stock. The dividend will be paid on February 2, 2026 to stockholders of record on January 23, 2026. As of January 13, 2026, TDS held 33,005,877 Series A shares and 37,782,608 Common shares of Array, so TDS is positioned as a major beneficiary of this one-time distribution.

The filing highlights a clear capital return event at the Array level funded by asset monetization. The long-term impact for TDS depends on how the remaining Array operations perform after this spectrum sale and how TDS allocates any cash it receives from the special dividend, which may be detailed in future company disclosures.

8-K Event Classification

2 items: 2.01, 8.01

2 items

Item 2.01 Completion of Acquisition or Disposition of Assets Financial

The company completed a significant acquisition or sale of business assets.

Item 8.01 Other Events Other

Voluntary disclosure of events the company deems important to shareholders but not covered by other items.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Accepted by SEC EDGAR 01/13/2026 - 04:14 PM EST Learn about SEC filing dates

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 13, 2026

TELEPHONE AND DATA SYSTEMS, INC.

(Exact name of registrant as specified in its charter)

Delaware

001-14157

36-2669023

(State or other jurisdiction of incorporation)

(Commission File Number)

(I.R.S. Employer Identification No.)

30 North LaSalle Street, Suite 4000, Chicago, Illinois 60602

(Address of principal executive offices and zip code)

Registrant's telephone number, including area code: (312) 630-1900

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Shares, $.01 par value

TDS

New York Stock Exchange

Depositary Shares each representing a 1/1000th interest in a share of 6.625% Series UU Cumulative Redeemable Perpetual Preferred Stock, $.01 par value

TDSPrU

New York Stock Exchange

Depositary Shares each representing a 1/1000th interest in a share of 6.000% Series VV Cumulative Redeemable Perpetual Preferred Stock, $.01 par value

TDSPrV

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

☐ Emerging growth company

☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Item 2.01. Completion of Acquisition or Disposition of Assets

On January 13, 2026, Array Digital Infrastructure, Inc. (f/k/a United States Cellular Corporation) (“Array”), a subsidiary of Telephone and Data Systems, Inc. (“TDS”), and certain subsidiaries of Array (collectively, “Sellers”) completed the previously announced sale of select spectrum assets to New Cingular Wireless PCS, LLC (“AT&T”), pursuant to the terms of that certain License Purchase Agreement (the “Purchase Agreement”), dated as of November 6, 2024, between Sellers and AT&T (the “Closing”).

The purchase price received by Array at the Closing was $1.018 billion, paid in cash. As previously disclosed, $232 million of the purchase price provided in the Purchase Agreement was allocated to certain spectrum licenses in the 700 MHz band (the “Designated Entity Spectrum Licenses”) held by entities in which Array now holds 100% of the equity interests. The closing of the sale of the Designated Entity Spectrum Licenses to AT&T occurred at the Closing and, accordingly, no portion of the purchase price was deferred.

Item 8.01. Other Events

Array Special Dividend

On January 13, 2026, the Board of Directors of Array declared a special cash dividend to holders of Array’s Common Stock (“Common Stock”) and holders of Array’s Series A Common Stock (“Series A Common Stock”) of $10.25 per share payable in cash to the stockholders of record as of January 23, 2026. On January 13, 2026, TDS held 33,005,877 shares of Series A Common Stock and 37,782,608 shares of Common Stock. The payment date in respect of the dividend is scheduled for February 2, 2026.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

						TELEPHONE AND DATA SYSTEMS, INC.
Date:			January 13, 2026			By:			/s/ Vicki L. Villacrez
									Vicki L. Villacrez
									Executive Vice President and Chief Financial Officer