Telecom behemoth Verizon is reportedly eyeing a possible merger with Charter Communications, a move that could further transform an already fast-evolving telecom/cable/communications industry.
p
The Wall Street Journal, which first reported the story yesterday, cited people familiar with the matter. Neither Verizon nor Charter has issued any official statement regarding a potential deal and Reuters yesterday published a separate report saying Verizon had made no such offer to Charter.
p
Both companies have already expanded their market reach through a number of mergers and acquisitions over the past few years. With nearly 26 million residential and business customers, Charter claims to be the second largest cable operator in the U.S. Verizon, meanwhile, is the largest provider of wireless services and also offers wireline, Internet and television services.
p
subhead
‘New Opportunities To Evolve’
/subhead
p
While noting there is no guarantee a deal will materialize, The Wall Street Journal reported that Verizon CEO Lowell McAdam has made a preliminary approach to officials close to Charter. The report added that it was unclear whether Charter’s leadership would be receptive to such an offer.
p
Buying Charter would take Verizon down a different path from rivals Comcast Corp. and ATT, who have bet big on combining content and distribution — Comcast, through its ownership of NBCUniversal, and ATT with its pending acquisition of Time Warner Inc., the Journal article noted. Verizon, by contrast, would be doubling down on its historic strength in distribution, as an owner of pipes that carry web traffic.
p
In its Q4 2016 earnings report Tuesday, Verizon said it continues to transform its business and enter new markets. The company reported quarterly revenues of $32.3 billion, down 5.6 percent from the fourth quarter of 2015. However, Verizon said it had seen net growth in the number of both wireless and fiber Internet customers.
p
The continuous changes from technology…