Verizon Approached Charter About Megamerger

Posted by Megalith 2:34 PM (CST)

Thursday January 26, 2017

Verizon wants to buy up a cable company to pump up demand for its wireless products, and that could very well be Charter. While talks have been informal thus far, the CEO of Verizon did reportedly reach out to the Charter guys, though it is unknown whether they told the wireless giant to screw off or are actually contemplating the epic decision. The latter is a very real possibility, though, as their business goals correlate: Verizon would be able to sell wireless-and-wireline bundles to many more consumers, while Charter already had plans to resell Verizon Wireless service so they could become a wireless communications services provider. This all sounds really great, since we have so many choices for cable and internet service already. I wonder if service and costs will improve?

"Verizon CEO Lowell McAdam has made a preliminary approach to officials close to Charter," and Verizon is "working with advisers to study a potential transaction," the report said, citing "people familiar with the matter." It's still unclear whether Charter's top executives are interested in a merger. Spokespeople for Verizon and Charter both declined comment when contacted by Ars today. If the companies do merge, they would create a mega-giant. Verizon's wireless division is the US' largest mobile carrier, with more than 140 million retail and wholesale connections. Verizon's wireline division has more than 7 million Internet subscribers over its fiber and DSL networks. Charter, meanwhile, bought Time Warner Cable and Bright House Networks last year in a merger that made it the second largest US cable company after Comcast. Charter has more than 22 million Internet subscribers. A combined Verizon/Charter would surpass Comcast's total of 24 million fixed Internet subscribers.