NEW YORK (TheStreet) -- AT&T (T - Get Report) jumped after the Federal Communications Commission issued formal approval of its $48.5 billion merger with DirecTV (DTV). Sprint (S - Get Report) plunged after it felt the affect of a price cut.

AT&T rose 1.1% to close at $34.29, on a day when the broader markets fell.

The telecom giant got a boost after the FCC issued final approval of its DirecTV merger, creating the nation's largest pay-TV company, according to a Reuters report.

With the merger completed, AT&T will service more than 26 million customers in the U.S., and in excess of 19 million Latin American customers, according to Reuters. That pushes Comcast (CMCSA - Get Report) to the No. 2 spot.

The FCC, however, required the companies to make some concessions to do the deal. Under the arrangement, AT&T promises to expand its high-speed Internet service to low-income areas in the nation and to schools, according to Reuters.

Sprint tanked 6.3% to finish the session at $3.44.

The telecom carrier had its price target cut by Jefferies to $3 a share from $4 a share on Thursday morning. And while Sprint's shares edged down after the cut on Thursday, it apparently took the brunt of the reaction on Friday.

"We believe lease accounting benefits are masking Sprint's cash flow weakness," Jefferies stated in its report, saying it expected more downside risk to its equity. 

Sprint issued EBITDA guidance of approximately 12% growth during fiscal 2015, but Jefferies believes it will be down nearly 18% after factoring in the benefits of lease plan accounting, according to a Benzinga report.


This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.