Number 1 wireless carrier Verizon is said to be exploring the possibilities of an acquisition of number 2 cable company Charter, who recently acquired Time Warner Cable. The deal would create a Kong-sized company, covering both wireless and cable communications.
Verizon Communications Inc. is exploring a combination with Charter Communications Inc. that would unite two giants in search of growth in a rapidly consolidating media and telecom landscape, according to people familiar with the matter.
The WSJ sources say everything is in the tentative stages at the moment, and any solid deal is way down the line. Charter acquired Time Warner Cable last year for $56 billion.
Verizon tallies a combined 10.4 million FiOS customers between broadband and video, while Charter boasts a combined 38 million customers accessing its Internet and TV services.
While such a deal may have run into a number of regulatory hurdles under the Obama administration, the Trump administration is likely to view the whole deal with a more favorable outlook. However, President Trump in the past has expressed concerns over AT&T’s proposed grab of Time Warner, and the carrier may also face some obstacles from various state regulatory agencies.
Shares of Charter Communications jumped nearly 10% in pre-market trading on Thursday following reports of the potential deal and is currently trading at 340.87, up 30.51.
