California Approves Verizon's Acquisition of Frontier

• Verizon agreed to end its diversity, equity and inclusion programs to secure FCC approval, which raised concerns from California regulators
• The acquisition will enable Verizon to expand Frontier's fiber network across 25 states and deploy fiber to 1 million or more American homes annually
• The original deal was announced in September 2024 for $9.6 billion in equity value plus $10 billion in Frontier debt assumption

Summary: California Approves Verizon's Acquisition of Frontier

The California Public Utilities Commission approved Verizon Communications' $20 billion acquisition of Frontier Communications on Thursday, following agreement on a series of conditions imposed by the state.

Deal Structure:

• Total transaction value: $20 billion ($9.6 billion purchase price plus $10 billion in assumed Frontier debt)
• Original announcement: September 2024
• FCC approval: May 2025 (after Verizon agreed to end its diversity, equity and inclusion programs)

Key Details:

Frontier Communications operates fiber-optic internet infrastructure across multiple states. The California approval was secured after Verizon met conditions set by state regulators, though specific requirements were not detailed in the announcement. The DEI program concession made to obtain FCC approval had previously raised concerns in California.

Strategic Implications:

Verizon plans to upgrade and expand Frontier's existing network infrastructure spanning 25 states. The company projects deploying fiber connectivity to at least 1 million American homes annually following the acquisition's completion.

Market Impact:

This acquisition significantly strengthens Verizon's fiber-optic broadband footprint and positions the telecom giant to compete more aggressively in the home internet market against cable providers and rival carriers. The deal expands Verizon's geographic reach beyond its traditional wireline markets and supports its strategy to capture growing demand for high-speed fiber internet services.

With both federal and key state regulatory approvals now secured, the transaction appears on track to close, representing one of the largest recent consolidation moves in the U.S. telecommunications sector.