The American company seems to be on a spree to acquire as many companies as possible. First, it was Yahoo, and now there is news coming about the company considering to acquire Comcast. All these business activities of Verizon are said to match its rival AT&T.
Comcast corporation an American conglomerate working in various diversified industries. It is the world’s largest broadcasting and cable television company by revenue. Earlier, there was news that Comcast is partnering with Verizon to launch their services as a telecom provider. It is expected to launch sometime during mid-2017. If Verizon goes ahead with acquiring Comcast, it will have to shell out a whopping $173 billion.
Lowell McAdam, the CEO of Verizon, hinted the possible acquisition when he mentioned about the company eyeing an investment in cable. He shared this with some of his friends during the CES 2017. The acquisition will help Verizon expand its reach in the wireless space. The technology acquired will help it in the 5G rollout. Source mentioned that the company was eyeing either Comcast or Charter.
Verizon is a dominant player in the 4G space but is also investing heavily in the 5G tech. Running on the cables for providing a stable and secure connection, 5G will be great for catering phones and TVs. That’s the reason for Verizon’s increased interest in the cable networks.
The market value of Charter is $83 billion, about half of that of Comcast, so Charter would be a better deal for Verizon, considering the present market condition. AT&T also acquired DirectTV and Time Warner recently and Verizon’s acquisition will imitate the deal once completed. Verizon has also sold a part of FiOS to make space for the new cable network merger.