WorldCom

( WCOM) received conditional approval from the

Justice Department

to acquire

Intermedia Communications

(ICIX)

, which controls web-hosting firm

Digex

(DIGX)

.

WorldCom will obtain a 55% equity stake and a 94% voting stake in Digex. Because of antitrust concerns, WorldCom must divest the remaining Intermedia business operations and assets.

The deal was initially valued at $3 billion in stock when it was first announced in September, but WorldCom's stock has dropped significantly since then.

In addition, the companies must still await approval from the

Federal Communications Commission

.