Verizon wins California approval to complete $9.6 billion Frontier deal

California regulators gave final approval for Verizon’s planned $9.6 billion acquisition of Frontier after Verizon agreed to concessions including a $500 million small-business spending pledge and other state commitments; the company expects the transaction to close on Jan. 20.

Verizon has won final approval from California regulators to acquire Frontier Communications, clearing the state hurdle for the transaction. The approval followed concessions Verizon agreed to with the California Public Utilities Commission. Verizon announced the planned purchase in September 2024 for $9.6 billion. Federal approval had been obtained earlier after Verizon pledged changes to certain diversity-related policies. Key details: - The California Public Utilities Commission voted unanimously to approve the deal. - Verizon committed to spend $500 million with California small businesses over the next five years. - The company pledged to expand its network in California, offer discounted voice and internet plans to qualifying residents, and provide $10 million to develop a recruiting pipeline with California State University aimed at hiring from underrepresented populations. - When first announced, the companies valued the transaction at about $20 billion including acquired debt. - The article notes Verizon previously received Federal Communications Commission approval after pledging to roll back some diversity policies, and it references similar cases involving other telecom firms. Summary: The California approval removes the last state-level barrier and allows Verizon to move toward closing the acquisition, which the company expects to complete on Jan. 20. The combined company is described as able to reach nearly 30 million homes and businesses with fiber-optic broadband. Implementation of the pledges to California small businesses, reporting and hiring practices is the next stated phase of the agreement.