Charter-Verizon merger ‘feasible,’ analyst says

iStockPhoto.com

A merger between top wireless company Verizon and No. 2 cable operator Charter is unlikely but possible, while a Verizon-Comcast merger would be too hard to push past regulators, said JPMorgan analyst Philip Cusick in a note to investors Monday.

"We believe a combination of Verizon and Charter is feasible but difficult on the financials, but Comcast's overall size and NBC ownership make a deal with Verizon a nonstarter as the regulatory review process would likely be quite difficult," Cusick wrote Monday in a research report focused on possible telecom industry mergers.

RELATED: Rumor mill: Verizon pondering purchase of Comcast or Charter

Sponsored by Google Cloud

Webinar: Remote Post Production In The Cloud

Video production companies across the world have traditionally been tethered to physical facilities, but with the advent of covid-19, remote post production capabilities are more important than ever. Join this webinar to learn more about how video producers can utilize Google Cloud infrastructure, along with partner applications, to develop a remote post production suite that brings your artists and editors together, no matter where they are.

Amid the backdrop of a Trump administration that would figuratively approve previously unimaginable mergers, the idea of Verizon buying either Comcast or Charter Communications got put in the ear of the telecom industry back in November, when UBS analyst John Hodulik first seeded the concept in an investor note.

The idea picked up a little steam last week, when the New York Post reported that Verizon CEO Lowell McAdam is seriously considering buying one of the two biggest cable companies in order to support his wireless giant’s 5G buildout.

Cusick didn’t actually let all the air out of the balloon, noting that the limited potential of MVNO deals won’t be enough for wireless and cable operators not to explore deeper levels of partnership.

"We don't believe that an MVNO structure will allow cable to be successful in wireless over time," Cusick said. "Cable's wireless business would eventually grow to a point where Verizon views them as a threat."

Suggested Articles

Sling this week announced a feature that integrates free, local over-the-air broadcast channels into the Sling TV guide on some 2020 LG smart TVs.

NBCUniversal’s entertainment business is getting new management and a new org chart that will further emphasize its shift toward streaming.

An executive order issued by President Trump late Thursday would ban business with ByteDance’s TikTok app 45 days after its issuance.