Brookfield to Acquire ISP Hotwire for ≈ $7 B

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Brookfield to Acquire ISP Hotwire for ≈ $7 B

Brookfield Infrastructure Partners is set to acquire Hotwire Communications—a provider operating across Florida, Texas, California, and other states—in a $7 billion deal (debt included), announced a few days ago. This move is part of a broader telecom trend toward expanding high-speed fiber networks, following big acquisitions by Verizon and AT&T

Sultan Sikander

June 16, 2025

4Min Reads

Brookfield to Acquire ISP Hotwire for ≈ $7 B

Internet and Telecom

📡 Brookfield to Acquire Hotwire Communications in $7 Billion Deal

Executive Summary

Brookfield Infrastructure Partners has entered into a definitive agreement to acquire Hotwire Communications in a landmark $7 billion transaction, inclusive of debt. The deal highlights Brookfield's growing appetite for fiber-optic infrastructure in the U.S. and marks one of the largest fiber broadband acquisitions of 2025. The move is also seen as a strategic asset rotation by Blackstone, Hotwire’s current owner, which acquired the company in 2021.

About the Companies

Brookfield Infrastructure Partners is a global infrastructure investment firm that operates assets across utilities, transport, energy, and telecommunications. It has recently expanded its presence in the data and internet space, including investments in fiber networks and data centers.

Hotwire Communications is a privately held fiber-optic internet service provider (ISP) founded in 2000. It primarily serves residential communities, luxury apartments, student housing, and mixed-use developments across nine U.S. states. Known for offering high-speed internet and integrated telecom services, Hotwire has grown significantly in the last four years, particularly under Blackstone’s stewardship.

Blackstone Infrastructure and Tactical Opportunities Groups, the seller in this transaction, bought Hotwire in 2021 and expanded the business from a regional ISP to a national-level player.

Deal Structure

The transaction is reportedly valued at around $7 billion, including debt. While specific equity and debt contributions have not been disclosed, it is known that Brookfield intends to fully acquire Hotwire and integrate it into its broader digital infrastructure portfolio.

Brookfield will assume control of Hotwire’s existing fiber networks, customer contracts, and technical operations. The closing of the deal is contingent on standard regulatory approvals and is expected to be finalized later this year.

Why Brookfield Is Buying

The acquisition comes as Brookfield continues to deepen its investment in digital infrastructure. Several strategic factors influenced the decision:

Fiber Infrastructure Boom

Global demand for fiber-optic broadband is accelerating due to trends such as remote work, 4K streaming, online gaming, and smart home technologies. Brookfield sees fiber as a long-term, stable asset class with recurring revenue potential.

Geographical Expansion

Hotwire currently operates in Florida, Texas, Pennsylvania, Georgia, North Carolina, South Carolina, Arizona, Nevada, and California. This footprint complements Brookfield’s existing investments and offers entry into fast-growing suburban and urban markets.

Private Networks and Community Focus

Hotwire specializes in building private fiber networks for residential communities, such as gated neighborhoods and high-end apartment complexes. This model ensures predictable, long-term customer relationships and higher profit margins.

Synergy Potential

Brookfield is already an investor in Intrepid Fiber Networks and other digital infrastructure firms. Hotwire's existing business can create synergy in operations, procurement, and network expansion strategies.

Implications for the Industry

The deal is the latest in a wave of broadband and telecom M&A activity:

In May 2025, AT&T acquired Lumen Technologies’ mass-market fiber division for $5.75 billion.

In 2024, Verizon secured fiber assets from Frontier Communications for $9.6 billion.

Apollo, DigitalBridge, and KKR have also been active in acquiring or backing fiber build-outs.

This consolidation trend reflects a broader pivot toward high-capacity, scalable internet infrastructure as more investors recognize fiber optics as critical digital utilities of the 21st century.

Reaction from Stakeholders

Brookfield’s Management described the deal as “a natural extension of our digital strategy,” indicating that Hotwire's strong brand and technical team will help it scale operations across key growth markets.

Blackstone, in a statement, noted that the investment in Hotwire has delivered “substantial value creation” over the past four years. The firm also hinted at redirecting future infrastructure investments into cloud computing, AI-related data assets, and green energy storage networks.

Market Analysts view the acquisition favorably, citing:

Continued growth in fiber penetration across the U.S.

Favorable regulatory climate for broadband expansion.

A long-term shift away from legacy copper and coaxial technologies toward full-fiber networks.

Challenges and Future Steps

While the deal is strategically sound, several hurdles and opportunities lie ahead:

Regulatory Approvals

Federal and state regulatory bodies will need to review the acquisition, especially since Brookfield already has significant infrastructure holdings. However, analysts expect smooth passage as there’s little market overlap.

Operational Integration

Merging the operations, HR systems, engineering teams, and customer support of two sizable telecom entities will require meticulous planning to avoid service disruption.

Capital Investment Plans

Brookfield is expected to invest significantly to upgrade Hotwire’s network capacity, add XGS-PON (10 Gigabit Symmetric Passive Optical Network) capabilities, and expand into new housing developments across the Sun Belt.

Market Competition

Regional ISPs, Lumen, Frontier, and even municipal broadband projects may pose competitive challenges. However, Hotwire’s niche model—building exclusive fiber networks for pre-contracted residential communities—offers some insulation from price wars.

Summary Table

Feature\tDetails

Buyer\tBrookfield Infrastructure Partners

Seller\tBlackstone Infrastructure & Tactical Groups

Target\tHotwire Communications

Deal Value\t~$7 billion (including debt)

Hotwire Coverage\t9 U.S. states, residential & business fiber

Closing Timeline\tExpected by late 2025, pending approvals

Industry Impact\tPart of fiber broadband consolidation wave

Strategic Goal\tScale fiber network holdings & revenues

Final Thoughts

Brookfield’s acquisition of Hotwire Communications is a decisive move in the ongoing transformation of U.S. internet infrastructure. As more consumers and businesses demand faster, more reliable internet, the importance of full-fiber networks will only grow. This acquisition not only positions Brookfield for sustained revenue growth but also marks a pivotal moment in the broader realignment of digital infrastructure ownership in North America.