Uniti’s Acquisition of Windstream Alleviates Key Customer Risk but Adds Business Uncertainty

Uniti’s merger with Windstream will primarily result in Windstream’s business going public, while the bulk of Uniti disappears. About 70% of Uniti’s revenue and 90% of profits come from the firm’s master lease agreement with Windstream. This lease expense for Windstream—and lease revenue for Uniti—will disappear when the firms merge, leaving Windstream’s residential and enterprise telecom business and the relatively small amount of other fiber leasing revenue that Uniti currently has.