NEW YORK CITY (dpa-AFX) - Wireless giant Verizon is reportedly seeking to acquire a major cable company as its rival AT&T's is on verge of buying Time Warner in a $109 billion deal.
According to New York Post, citing two well place sources, the wireless giant expects an acquisition of a cable company to drive demand for its wireless data products.
Verizon Chief Executive Lowell McAdam told friends at the Consumer Electronics Show in Las Vegas that he wants to buy into cable, the report says.
Verizon requires a cable company as the wireless industry transitions to 5G. The most viable targets are said to be 'Charter or Comcast,' while 'Altice' is considered to be too small.
However, market experts say that the news does not make any sense in technical terms as Verizon's network is different from Comcast and Charter and 5G networks are different from cable networks.
Meanwhile, Verizon is currently under pressure after its deal to buy Yahoo is under threat after the internet company's disclosure of a data breach that affected more than 500 million accounts.
AT&T, which owns DirecTV, had recently announced a deal to buy 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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