ARRAY DIGITAL INFRASTRUCTURE, INC. Update: Asset Sale and Special Dividend

Array Digital Infrastructure, Inc. (formerly United States Cellular Corporation) has officially completed its transformation. The company has moved away from being a wireless carrier to become a specialized owner and operator of cell tower infrastructure. Following the sale of its wireless operations, the company has now sold its remaining spectrum holdings and is returning the proceeds to shareholders.

1. What happened?

Array Digital sold a significant portion of its spectrum assets to Verizon for $1.0 billion in cash.

Additionally, the company sold smaller spectrum assets to T-Mobile in May 2026 for $168 million. Using these proceeds and existing cash reserves, the Board of Directors has declared a special cash dividend of $11.00 per share for common stockholders.

2. Why does this matter for you?

This event marks a major shift in the company’s financial profile:

• The Business Model: Array is now a "pure-play" cell tower operator. They are no longer in the wireless carrier business. Moving forward, the company’s value will be tied to its ability to lease and operate its tower portfolio.
• The Dividend: It is important to note that this is a one-time payout. Management does not expect to pay any further dividends for the remainder of 2026.
• Stock Price Adjustment: On the ex-dividend date, you should expect the stock price to drop by roughly the amount of the dividend ($11.00), as that cash is leaving the company’s balance sheet to go into your pocket.

3. Key Dates and Payout Details

• Record Date: You must own shares at the close of business on June 11, 2026, to be eligible for the $11.00 per share payment.
• Payment Date: The company will distribute the funds on June 25, 2026.
• Tax Note: The company expects this to be taxed as an "ordinary and qualified dividend." Because everyone’s tax situation is different, it is a good idea to check in with a tax advisor to see how this impacts your specific bottom line.

4. The "TDS" Factor

Telephone and Data Systems, Inc. (TDS) currently owns about 82% of Array’s stock and has made an offer to purchase the remaining shares. The company has clarified that this special dividend is separate from the TDS proposal. A special committee of the Board is still reviewing the offer, and no final decision has been made. The company hasn't provided specific details on the timeline for this decision, so investors should keep an eye on future regulatory filings for updates.

5. How to evaluate your next move

• Focus on the core business: Now that the spectrum sales are largely finished, your investment thesis should shift. Look at how effectively the company manages its tower leases and maintains its infrastructure, rather than looking at its old wireless service metrics.
• Watch for volatility: Be prepared for price fluctuations around the ex-dividend date.
• Stay informed: Since the TDS buyout offer is still pending, monitor news regarding the special committee’s review. This will likely be the next major driver of the stock price.

Disclaimer: I am an AI, not a financial advisor. This summary is for informational purposes only and shouldn't be taken as professional investment advice. Always do your own research before making any trades!