Verizon Expected to Navigate CPUC Approval of Frontier Acquisition

Deal News | Jun 17, 2025 | EIN

Verizon Expected to Navigate CPUC Approval of Frontier Acquisition

Blair Levin, a Policy Advisor from New Street Research, has expressed his views regarding the $20 billion acquisition of Frontier Communications by Verizon. Levin anticipates that the transaction will be approved by the California Public Utilities Commission (CPUC) despite potential challenges, mainly related to diversity, equality, and inclusion (DEI) issues under the Trump administration's policy framework. The FCC has already approved the deal, and Levin believes that changes in Verizon’s DEI policies aim to appease regulatory bodies. Despite the legal sideshow surrounding a policy target of 21.5% contracting with disadvantaged enterprises, Levin concludes that the probability of CPUC rejecting the transaction remains low, though it carries a limited risk given California's current political climate.

Sectors

  • Telecommunications
  • Regulatory and Compliance

Geography

  • United States – The companies involved, Verizon and Frontier Communications, are based in the US, and the regulatory body, CPUC, is a Californian entity.
  • California – Central to the discussion as the CPUC, a California entity, is a key decision-maker in the merger approval process.

Industry

  • Telecommunications – The article involves Verizon's acquisition of Frontier Communications, which operates in the Telecommunications sector.
  • Regulatory and Compliance – Focuses on the regulatory approval process required for the merger from the CPUC and previously the FCC.

Financials

  • $20 billion – The value of Verizon's acquisition of Frontier Communications.

Participants

NameRoleTypeDescription
VerizonBidding CompanyCompaniesA telecommunications company seeking to acquire Frontier Communications.
Frontier CommunicationsTarget companyCompaniesThe company that Verizon is trying to acquire.
California Public Utilities Commission (CPUC)Regulatory ApproverGovernmentThe regulatory body that needs to approve Verizon’s acquisition of Frontier.
Federal Communications Commission (FCC)Regulatory ApproverGovernmentThe federal body that has already approved the Verizon/Frontier deal.
Blair LevinAnalystPeopleA Policy Advisor to New Street Research providing analysis on the transaction.
New Street ResearchAnalyst FirmCompaniesThe firm that Blair Levin is affiliated with, providing insights on the merger.