DALLAS (dpa-AFX) - Verizon is mulling the acquisition of a big cable company following its rival AT&T's deals with DirecTV and Time Warner, the New York Post reported, citing two well-placed sources. The move is expected to help the firm grow demand for its wireless data products.
Verizon Chief Executive Lowell McAdam reportedly told friends at the Consumer Electronics Show in Las Vegas that he wants to buy into cable. The company is likely targeting Charter or Comcast, while Altice is too small.
The NY Post noted that Verizon is not in talks with any cable company and may not ever make such a move. However, the CEO is said to be under much pressure recently as Verizon's deal to buy Yahoo is still in trouble following the recent hacks of the internet portal. Verizon is yet to say whether it is moving ahead with its planned takeover of Yahoo.
As per the report, Verizon needs the acquisition for their 5G plans. The wireless giants operate on 4G wireless networks, but are trying for 5G connections that can work with cable systems to provide more stable coverage.
Rival AT&T, which owns DirecTV, recently announced an agreement to acquire Time Warner for $109 billion in cash and stock deal. In early January, AT&T announced 5G Evolution to offer ultra-fast internet access to its customers. The greater speed of 5G is expected to support overall network performance for video, the Internet of Things, 4K video, augmented and virtual reality, smart home and cities, autonomous vehicles and such things.
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