We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Has Charter Communications Rejected Verizon's $100B Offer?
Read MoreHide Full Article
As per a recent FierceCable report, U.S. telecom behemoth, Verizon Communications Inc. (VZ - Free Report) , has reportedly offered more than $100 billion to acquire Charter Communications Inc. (CHTR - Free Report) , the second largest cable MSO in the U.S. The offer – valued between $350 and $400 per share – was supposedly rejected by the cable company stating that the price offered was too low. Also, Charter Communications is not ready to get acquired.
Well, none of these two companies have commented anything about the merger negotiations yet. Currently, both Verizon Communications and Charter Communications carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Meanwhile, reports say that Verizon has also been eyeing another Liberty Media property, Sirius XM Holdings Inc. (SIRI - Free Report) for a buyout, although this has not yet resulted in a bid.
The Expected Synergies
Given the scope for revenue and cost synergies from a merger, Verizon is eyeing a cable acquisition to help it launch its high-speed 5G wireless plans. These plans require the fiber-optic networks that cable companies possess. Charter Communications’ wide and dense fiber-optic network could be valuable for Verizon’s 5G wireless data services. As we all know, Verizon is currently conducting customer trials in 11 U.S. cities for fixed 5G wireless network. The company is focusing on building a fiber and wireless infrastructure in a bid to deliver mobile video efficiently.
The wireless giant, which was the first to deploy the 4G LTE (Long-Term Evolution) network nationwide, is initially testing equipment at 15GHz, 28GHz, 39GHz and 64GHz frequency bands for 5G network deployment. The company’s partners in the 5G project are Cisco Systems Inc. (CSCO), Ericsson LM (ERIC), Nokia Corp. (NOK) and Samsung.
The buyout could help Verizon Communications cope up with slow broader U.S. telecom market and emerge as the high-speed broadband Internet services provider in the U.S.
Meanwhile, on May 8, Comcast Corp. (CMCSA - Free Report) and Charter Communications – two major cable companies – have agreed to jointly work on their wireless services businesses, making the U.S. wireless industry severely competitive. For this much hyped wireless venture, both companies have already inked a Mobile Virtual Network Operator (MVNO) agreement with Verizon Communications to utilize its wireless network.
The Consolidated U.S. Pay-TV Industry
The U.S. pay-TV industry has been currently witnessing massive consolidation, aiming to remain more competitive, while widening and retaining its position in the industry.
Verizon Communications’ rival, U.S. telecom behemoth AT&T Inc. (T - Free Report) has agreed to acquire media giant Time Warner in an $85.4 billion cash-and-stock deal. The deal, expected to close by the end of 2017, has gained the European Union’s approval but still awaits nod from the U.S. Department of Justice. If the proposed merger goes through, the combined entity will become a major player in the consolidated telecom-media space.
Accordingly, Verizon Communications is planning to unite AOL Inc. with Yahoo Inc.’s core internet assets under one umbrella – Oath–post completion of the $4.83 billion Verizon-Yahoo deal by the end of this current quarter (by Jun 30, 2017). AOL Inc. – a major player in the digital content and online advertising space – was acquired by Verizon in Jun 2015. We believe a slowdown in mobile phone sales has prompted Verizon Communications to diversify its business model into the digital media platform, targeting the lucrative segments of digital media, advertising and content creation, as well as distribution.
Similarly, the twin buyout of Time Warner Cable and Bright House Networks has benefited Charter Communications in terms of geographic expansion and operating cost synergies.
To this end, Verizon Communications' recent approach goes well with the already existing consolidation in the industry.
Price Performance
Over the past three months, share price of Verizon declined 7.17% compared with the Zacks categorized Wireless National industry’s fall of 6.25%.
Meanwhile, share price of Charter Communications moved up 7.48% but failed to surpass the Zacks categorized Cable Television industry’s 8.85% growth, over the said time frame.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research. It's not the one you think.See This Ticker Free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Has Charter Communications Rejected Verizon's $100B Offer?
As per a recent FierceCable report, U.S. telecom behemoth, Verizon Communications Inc. (VZ - Free Report) , has reportedly offered more than $100 billion to acquire Charter Communications Inc. (CHTR - Free Report) , the second largest cable MSO in the U.S. The offer – valued between $350 and $400 per share – was supposedly rejected by the cable company stating that the price offered was too low. Also, Charter Communications is not ready to get acquired.
Well, none of these two companies have commented anything about the merger negotiations yet. Currently, both Verizon Communications and Charter Communications carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Meanwhile, reports say that Verizon has also been eyeing another Liberty Media property, Sirius XM Holdings Inc. (SIRI - Free Report) for a buyout, although this has not yet resulted in a bid.
The Expected Synergies
Given the scope for revenue and cost synergies from a merger, Verizon is eyeing a cable acquisition to help it launch its high-speed 5G wireless plans. These plans require the fiber-optic networks that cable companies possess. Charter Communications’ wide and dense fiber-optic network could be valuable for Verizon’s 5G wireless data services. As we all know, Verizon is currently conducting customer trials in 11 U.S. cities for fixed 5G wireless network. The company is focusing on building a fiber and wireless infrastructure in a bid to deliver mobile video efficiently.
The wireless giant, which was the first to deploy the 4G LTE (Long-Term Evolution) network nationwide, is initially testing equipment at 15GHz, 28GHz, 39GHz and 64GHz frequency bands for 5G network deployment. The company’s partners in the 5G project are Cisco Systems Inc. (CSCO), Ericsson LM (ERIC), Nokia Corp. (NOK) and Samsung.
The buyout could help Verizon Communications cope up with slow broader U.S. telecom market and emerge as the high-speed broadband Internet services provider in the U.S.
Meanwhile, on May 8, Comcast Corp. (CMCSA - Free Report) and Charter Communications – two major cable companies – have agreed to jointly work on their wireless services businesses, making the U.S. wireless industry severely competitive. For this much hyped wireless venture, both companies have already inked a Mobile Virtual Network Operator (MVNO) agreement with Verizon Communications to utilize its wireless network.
The Consolidated U.S. Pay-TV Industry
The U.S. pay-TV industry has been currently witnessing massive consolidation, aiming to remain more competitive, while widening and retaining its position in the industry.
Verizon Communications’ rival, U.S. telecom behemoth AT&T Inc. (T - Free Report) has agreed to acquire media giant Time Warner in an $85.4 billion cash-and-stock deal. The deal, expected to close by the end of 2017, has gained the European Union’s approval but still awaits nod from the U.S. Department of Justice. If the proposed merger goes through, the combined entity will become a major player in the consolidated telecom-media space.
Accordingly, Verizon Communications is planning to unite AOL Inc. with Yahoo Inc.’s core internet assets under one umbrella – Oath – post completion of the $4.83 billion Verizon-Yahoo deal by the end of this current quarter (by Jun 30, 2017). AOL Inc. – a major player in the digital content and online advertising space – was acquired by Verizon in Jun 2015. We believe a slowdown in mobile phone sales has prompted Verizon Communications to diversify its business model into the digital media platform, targeting the lucrative segments of digital media, advertising and content creation, as well as distribution.
Similarly, the twin buyout of Time Warner Cable and Bright House Networks has benefited Charter Communications in terms of geographic expansion and operating cost synergies.
To this end, Verizon Communications' recent approach goes well with the already existing consolidation in the industry.
Price Performance
Over the past three months, share price of Verizon declined 7.17% compared with the Zacks categorized Wireless National industry’s fall of 6.25%.
Meanwhile, share price of Charter Communications moved up 7.48% but failed to surpass the Zacks categorized Cable Television industry’s 8.85% growth, over the said time frame.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research. It's not the one you think. See This Ticker Free >>