TELEPHONE & DATA SYSTEMS INC /DE/ 8-K

What Happened
Telephone and Data Systems, Inc. (TDS) filed an 8-K on January 13, 2026 reporting that its subsidiary Array (f/k/a United States Cellular Corporation) completed the previously announced sale of select spectrum assets to New Cingular Wireless PCS, LLC (AT&T). The Closing occurred on January 13, 2026 under a License Purchase Agreement dated November 6, 2024, and Array received $1.018 billion in cash. On the same day Array’s board declared a special cash dividend of $10.25 per share payable to holders of Array common and Series A common stock.

Key Details

• Purchase price paid at Closing: $1.018 billion in cash.
• $232 million of the purchase price was allocated to certain 700 MHz “Designated Entity Spectrum Licenses”; those licenses were sold at Closing and no portion of the price was deferred.
• Array declared a $10.25 per share special cash dividend on Jan 13, 2026 to shareholders of record as of Jan 23, 2026; payment date is Feb 2, 2026.
• TDS reported holdings on Jan 13, 2026 of 33,005,877 Series A shares and 37,782,608 common shares of Array — implying TDS would receive roughly $725.6 million from the dividend based on those holdings (33,005,877 + 37,782,608 shares × $10.25).

Why It Matters

• This transaction generated a substantial, immediate cash inflow to Array ($1.018B), which can materially affect Array’s and TDS’s balance sheet and liquidity.
• The special $10.25/share dividend returns a large portion of the proceeds directly to Array shareholders; because TDS holds a majority of Array shares listed in the filing, TDS stands to receive a significant cash distribution (approximately $725.6M based on disclosed holdings).
• Investors should note the timing: record date Jan 23, 2026 and payment Feb 2, 2026; the filing confirms the sale closed without deferred payments for the disclosed licenses, reducing near-term execution risk.