Telephone and Data Systems Shares Climb After Canceling Array Digital Buyout

Shares of Telephone and Data Systems Inc. (NYSE:TDS) surged 6.8% on Wednesday after the telecommunications firm announced it was terminating its offer to acquire the portion of Array Digital Infrastructure Inc. (NYSE:AD) it does not already own.

Deal Scrapped Over Valuation

TDS has officially withdrawn its previously announced proposal to purchase the outstanding common shares of Array, in which it currently holds an approximately 82% ownership interest. The company stated that it could not reach a consensus on the terms of the transaction.

The original offer proposed exchanging each Array common share for 0.86 of a TDS common share. "While we remain confident that the combination presents substantial benefits, we no longer believe that now is the right time to complete such a transaction," said Walter Carlson, President and CEO of TDS. "Despite extensive review on both sides, we were not able to reach agreement on the form of consideration and value."

Shift to Share Repurchases

Following the deal's termination, TDS announced it would recommence its stock buyback initiatives. The company plans to resume repurchases under its existing share repurchase programs.

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Key details on the repurchase program include:

• An additional $500 million share repurchase authorization was announced in November 2025.
• As of June 30, 2026, approximately $523.9 million remained available under the company's repurchase authorizations.

Future Strategy for Array

Both companies will now increase their focus on monetizing Array's remaining wireless spectrum assets. TDS stated it continues to support Array's intention to opportunistically sell these assets and that they will pursue these opportunities in the near term.

Array Digital Infrastructure is a major owner and operator of shared wireless communications infrastructure in the United States, managing a portfolio of over 4,400 cell towers.