On Thursday, the Federal Communications Commission officially sanctioned AT&T’s acquisition of Leap Wireless.
Last summer, AT&T confirmed plans to acquire prepaid-wireless company Leap Wireless International. AT&T said it will absorb the company behind the Cricket brand for approximately $1.19 billion in cash.
Ostensibly, the deal was intended to kick-start the carrier’s expansion into the low-cost market and values Leap shares at $15 a piece.
Although AT&T hasn’t said much about the acquisition yet, we’re told the deal will include Leap’s various licenses, network assets, retail stores and – this could be the biggest part – approximately five million subscribers.
Acknowledging that an unchecked deal could’ve harmed the public interest, the FCC says concessions and commitments made by AT&T have effectively counterbalanced any major concerns. Many of them focus on south Texas and southwestern markets where Cricket holds a strong footprint.
“We find that the public interest benefits of the proposed transaction outweigh the likelihood of significant public interest harms, such that overall, the proposed transaction is in the public interest,” the commission said, according to a report summary from The Verge.
