Verizon Considers Charter Tie-Up–Reports

Verizon Communications is mulling a combination with Charter Communications, according to reports.

Verizon CEO Lowell McAdam reportedly has made an overture to Charter officials, according to The Wall Street Journal. However, the WSJ’s sources said that it’s unclear whether Verizon is interested in a mega-merger, or simply creating a joint venture.

Sources meanwhile told Reuters that Charter is one of many possible acquisition targets; so, talks are preliminary and may not result in a deal. Charter of course is in the middle of the integration of Time Warner Cable, its recently closed merger that has catapulted it to become the No 2 cable MSO in the US, behind Comcast. Verizon is a much smaller player in terms of TV service, but there is significant market overlap in the Northeast between the two, especially in New York City—meaning that antitrust examinations are likely to be rigorous. Similarly, both Verizon and Charter are major ISPs in the Northeast.

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