UPDATED: AT&T in $2.35 Billion Deal to Buy for Some Alltel Assets

AT&T released a statement Friday night saying it will buy wireless assets from Verizon Wireless for $2.35 billion in cash.

"Under terms of the agreement, AT&T will acquire wireless properties, including licenses, network assets and 1.5 million current subscribers in 79 service areas, primarily in rural areas across 18 states," the news release says. "Verizon Wireless is required to divest these properties as part of the regulatory approvals granted for its purchase of Alltel earlier this year.

"The states represented are: Alabama, Arizona, California, Colorado, Iowa, Kansas, Michigan, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, South Dakota, Tennessee, Utah, Virginia and Wyoming."

Click here to see the full news release.

Original story:

CNBC reported Friday afternoon that AT&T is near $2.5 billion deal to buy most of Verizon's Alltel divestitures.

The Federal Communications Commission and the Department of Justice required Verizon to divest 105 cellular market areas and the associated assets as a condition of its $28.1 billion acquisition of Alltel in January. Verizon has been running the divestiture assests separately since it closed the deal.

Verizon recently claimed that it needed until July 8 to complete the auction of the 105 cellular market areas because some of the top bidders requested "additional due diligence and data," according to the letter drafted by Verizon's legal representative Wiley Rein LLP. 

Neither Verizon nor AT&T would comment on the reports. In a blog post, the Wall Street Journal said "AT&T is expected to pay cash, but the total valuation could also factor in some swapping of wireless markets, one person familiar with the situation said."