### Verizon's $20 Billion Frontier Acquisition Moves Forward with Controversial FCC Approval

Verizon's acquisition of Frontier Communications for $20 billion has been greenlighted by the Federal Communications Commission (FCC) under some unique conditions. Brendan Carr, the head of the FCC and a Donald Trump appointee, approved the merger upon Verizon's commitment to discontinue its diversity, equity, and inclusion (DEI) practices.

In his statement, Carr revealed that his support came after Verizon assured that it would halt its DEI-related initiatives. The merger allows Verizon to absorb Frontier's significant broadband subscriber base and extensive fiber optic network.

Carr's stance on DEI programs has been clear ever since he assumed leadership at the FCC. Shortly after taking over, Carr initiated an investigation into Verizon's DEI policies, linking the ongoing probe directly to Verizon's efforts to acquire Frontier. He emphasized his focus on eliminating what he regards as discriminatory DEI practices.

While Carr didn't explicitly state that removing DEI initiatives was a condition for merger approval, it's evident from his actions and statements that this was a crucial factor. In an interview with Bloomberg, Carr remarked that businesses seeking FCC approval should end any DEI-related activities.

This approach isn't unique to Verizon. Other companies, like T-Mobile, also had to drop DEI programs to secure approvals for mergers and acquisitions. T-Mobile, for instance, removed a DEI-promoting page from its website to facilitate its deal with fiber provider Lumos. Similarly, Paramount, aiming to merge with Skydance, has indicated its readiness to end DEI policies to meet the current administration's demands.

The pattern emerging from these cases suggests that businesses dealing with the Trump administration's FCC can secure favorable outcomes by aligning with Carr's anti-DEI stance, rather than by addressing potential market consolidation concerns.