Maham Fatima
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On May 16, the Federal Communications Commission's Wireline Competition Bureau approved Verizon Communications Inc.'s (NYSE:VZ) $20 billion acquisition of Frontier Communications (NASDAQ:FYBR), which granted the necessary license and authorization transfers. FCC Chairman Brendan Carr stated that this approval would lead to billions of dollars in new infrastructure investments nationwide. The $20 billion deal is an all-cash transaction that was announced earlier in September 2024.
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The approval came about 3 hours after Verizon announced the immediate termination of all its DEI (diversity, equity, and inclusion) programs across employee recruitment, training, suppliers, and corporate sponsorships. Verizon's Chief Legal Officer, Vandana Venkatesh, in a letter to FCC Chair Carr, acknowledged that some DEI policies could be associated with discrimination. Following Verizon's announcement to end its DEI programs, Carr lauded it as a good step forward for equal opportunity. Democratic FCC Commissioner Anna Gomez criticized Verizon's decision to end DEI programs
Verizon CEO Hans Vestberg believes that the deal will enhance the company's competitiveness, while Frontier CEO Nick Jeffery noted it would provide a cash premium for shareholders and expand connectivity access. Verizon Communications Inc. (NYSE:VZ) would acquire Frontier Communications Parent Inc. (NASDAQ:FYBR) for about $9.6 billion and assume $10 billion in debt. The deal is expected to close in early 2026.
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Disclosure: None. This article is originally published at Insider Monkey.
