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Verizon In Talks To Merge With Charter

PHOTOGRAPH: Instagram.com/verizonwirelessdepot/ | Resized image of Verizon store front taken from Instagram.com/verizonwirelessdepot/

Reports hint at possible merger talks between Verizon and Charter. The talks are currently in early stages. However, according to reports, Verizon CEO Lowell McAdam reached out to Charter officials to explore the possibility. Reports also indicate that McAdam is now working with bankers to come up with a potential deal.

Industry insiders state that McAdam spoke to the CEO of Liberty Media, which has a stake in Charter. His meeting with CEO Greg Maffei explored the possibility of a merger. While talks of a potential combination are gaining momentum, industry watchers state that Verizon executives haven’t directly spoken about it to their prospective partner, Charter. They also add that Verizon has a shortlist of ten companies, not necessarily part of a shopping list, but ones, it has its eyes on. As a result, there is possibility that the Charter-Verizon marriage may or may not happen.

Verizon-Charter, an industry leader

An article in Business Insider states that the Verizon-Charter merger, if it happens, would create an industry mammoth. It would also give Verizon a strong presence in home broadband and pay TV. At the moment, Charter has 17 million cable subscribers and 21 million broadband customers. On the other hand Verizon has 114 million cellphone customers, 7 million Internet subscribers and 4.6 million TV customers, states an article in Washington Post.

Once merged, the entity would give them the biggest wireless and internet subscriber base in US. The combined entity’s subscriber base would surpass that of Comcast. In addition, the entity will also benefit from a TV customer base on par with Comcast.

Bloomberg adds that if the companies go for an outright merger, it would be like following a trend of mega deals. The trend includes Charter acquiring Time Warner Cable and Bright House Networks. This acquisition made Charter the second-largest cable operator, the top one being Comcast. However, neither company has commented on the reports of a possible merger and it is just a matter of time till the plot unravels.

Also Read: Verizon Buys EdgeCast Networks to Get Bigger Piece of Content Delivery Market

Also Read: Verizon Buys Vodafone’s 45% Interest in its Mobile Unit

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About the author

Nandini loves to write about everything happening right now especially TV shows, movies, celebrities, business and news. When she is not writing, she is either reading, shopping online or watching a movie.