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Verizon CEO Downplays Comcast Megamerger Talk

With Donald Trump's regulators more likely to approve industry megamergers, Wall Street has been positively giddy speculating on a wave of looming mergers and acquisitions. Sprint and T-Mobile is the most frequent rumor du jour, but reports have also suggested that Verizon is considering an acquisition of either Charter or Comcast. While Verizon hasn't ruled out such a deal, the company's recent focus on media and ads make it far more likely that Verizon pursues a giant media buy (CBS, Disney).

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But Wall Street simply can't help itself, in part because it profits off of the speculation and gossip as stocks jump or dip on the rumors they themselves often push.

That said, Verizon CEO Lowell McAdam poured a little cold water on Wall Street's bubbly excitement this week, stating in a meeting with Wall Street analysts that while he's open to conversations with everybody, the company isn't really feeling pressured to make any new megadeals.

"Well, I like to consider myself a polite and hospitable person," McAdam said. "It doesn't change anything that's gone on in the last five years. If somebody calls, you have a nice chat with them. But the bottom line is we don't feel the urgency that seems to be out there in the analyst community, the banking community, and the media."

Granted there are numerous instances where Verizon said one thing then immediately proceeded to do something different, so this doesn't necessarily rule out a megadeal in Verizon's immediate future. But it does reiterate the fact that Wall Street is having a wonderful time cashing in on the megadeal speculation it itself generates.

Most recommended from 18 comments



battleop
join:2005-09-28
00000

5 recommendations

battleop

Member

Oh Please....

"With Donald Trump's regulators more likely to approve industry megamergers"

Remind us again who's FCC approved the NBC/Comcast merger that set the precedent for other similar mega mergers? It's hard to say no to a similar merger when a previous one was a approved.

batterup
I Can Not Tell A Lie.
Premium Member
join:2003-02-06
Netcong, NJ

4 recommendations

batterup

Premium Member

Too much overlap.

There is too much overlap in the Bellatlantic area with FiOS and Comcast to be approved without draconian conditions.