Google (GOOG) (GOOGL) on Wednesday said that its fiber internet unit, GFiber, will merge with Astound Broadband to form an independent provider, with Google retaining a minority stake.
The new company will be majority owned by investment firm Stonepeak and led by the existing GFiber executive team, “utilizing their expertise in high-speed fiber innovation to manage the combined network footprint,” Google said in a press release on Wednesday. The transaction is expected to close in the fourth quarter.
The combined business will be led by the existing GFiber executive team, utilizing their expertise in high-speed fiber innovation to manage the combined network footprint.
Google Fiber, launched in 2010, was an early effort by the tech giant to build ultra-fast fiber-optic broadband networks in the U.S., starting with a gigabit-speed rollout in Kansas City in 2012.
GFiber has been part of Google’s “Other Bets” segment, which includes non-core assets such as the Waymo (WAYMO) robotaxi division and drug discovery business Isomorphic Labs.