AT&T's (T) Leap Wireless Acquisition Approved By FCC

NEW YORK (TheStreet) -- AT&T  (T) shares are up slightly in extended trading on news that the FCC has approved its acquisition of fellow telecom company Leap Wireless (LEAP).

Despite the fact that regulators were leery of allowing industry leaders AT&T and Verizon  (VZ) increase their share of low frequency mobile spectrum -- which Leap Wireless represents -- the deal went through. Analysts point to the fact that T-Mobile  (TMUS) and Sprint  (S) both own sizable shares of the high frequency spectrum to counter that argument.

Leap shareholders have already approved the deal and will receive $15 per share, which values the company and its low frequency spectrum at $1.2 billion. Leap Wireless' Cricket Mobile brand will replace AT&T's own Aio prepaid brand.

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TheStreet Ratings team rates AT&T INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate AT&T INC (T) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, notable return on equity, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

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