Frontier Nears $38.50 Buyout Price on Final Verizon Deal Approval
California regulators have granted the last required clearance for the $20 billion acquisition by Verizon, with the all-cash deal now set to close on January 20.
Frontier Communications (NASDAQ: FYBR) shares approached their 52-week high in recent trading, climbing to $38.44, just shy of the $38.50 per-share price offered by Verizon Communications in its pending acquisition. The move follows the announcement that the two companies have secured the final regulatory approval needed to complete their $20 billion transaction.
The last hurdle was cleared after the California Public Utilities Commission gave its consent, according to a joint statement from the companies. With all necessary state and federal approvals in hand, the landmark deal is scheduled to close on January 20, 2026.
The small gap between Frontier's current stock price and the acquisition price reflects high investor confidence that the merger will be finalized without issue. Once the deal closes, Frontier will be absorbed into Verizon and its stock will be delisted from the Nasdaq exchange.
Strategic Expansion for Verizon
The all-cash transaction represents a major strategic move by Verizon to significantly expand its national fiber-optic network. By acquiring Frontier, Verizon will gain a network that includes approximately 7.2 million fiber locations and 2.2 million existing fiber broadband subscribers across 25 states. This accelerates Verizon’s ability to offer high-speed internet and premium mobility services to new territories.
Verizon has stated that it expects the deal to generate at least $500 million in annual cost savings. The acquisition is a key component of Verizon's strategy to enhance its competitiveness against cable giants and other telecom providers by rapidly scaling its Fios internet service footprint.
A Long-Awaited Conclusion
The path to the merger's finalization has been a multi-stage regulatory process. The deal, which received unanimous approval from both companies' boards of directors, previously gained clearance from the Federal Communications Commission (FCC) in May 2025. The recent approval from California regulators was the last requirement, marking the end of a thorough review process.
For Frontier, a company that has focused heavily on its own fiber buildout in recent years, the acquisition by a telecom giant like Verizon is the culmination of its strategic transformation. The company, which has a market capitalization of approximately $9.57 billion, has worked to upgrade its legacy copper networks to fiber to meet modern bandwidth demands. The analyst consensus price target for Frontier currently sits at $38.50, perfectly aligned with the buyout price.
With the deal's closing now imminent, market attention will pivot to the operational integration of Frontier's assets into Verizon's vast infrastructure. The successful combination of the two networks will be critical for Verizon to realize the projected synergies and strengthen its position as a leader in the U.S. telecommunications landscape.