Verizon is Buying the S&P 500!

“What is the truth and what is rumor ?”

Almost everyone, except possibly the Verizon (VZ) CEO and its Board of Directors, can see that Verizon has been pinned into a corner by the recent moves of T-Mobile (TMUS) and the brilliant acquisitions of AT&T (T). T-Mobile’s move to merge with Sprint ( S) and its aggressive campaign for wireless customers have taken a toll on Verizon. Add to the mix recent moves by AT&T to acquire Direct TV, Time Warner and Straight Path Communications and Verizon seems to be having a melt down.

At least this seems to be the case if you believe half the rumors that are surfacing on Wall Street. Most investors, including myself, have been confused about Verizon’s announced acquisitions of AOL and Yahoo. Neither of which added a lot of  value for Verizon in comparison with the cost (this investors opinion)

Now the latest rumors making their way around Wall Street are that Verizon will attempt to outbid AT&T for Straight path Communications for its prized spectrum. This was later denied by Verizon’s CEO as he stated that Verizon had all the spectrum they needed for its 5-G roll out. Then the CEO announced that Verizon would be open to being acquired by a major entertainment entity like Disney (DIS) or Comcast (CMCSA). There has been no response, at least to my knowledge, from either Disney or Comcast but I have no doubt both are looking into the possibilities. Now it seems Verizon’s latest target has become Time Inc. (Time) ! This latest one makes no sense at all to me – what would Verizon want with a defunct magazine publishing dinosaur?

What is the truth and what is rumor ? I have no idea at this point but it seems Wall Street has a lot of time these days to spread rumors and gossip or perhaps it is well planned misdirection. If you believe the Wall Street rumor mill you would certainly come to the conclusion Verizon is looking to buy out the whole S&P 500 but of course that is just sarcasm. There is no doubt though , using a chess term the Verizon CEO has been checked, but he is not checkmated yet. He will have to make some serious moves to move his company into a position in which it can win the game again. Whatever the truth is I will continue to hold my position in Verizon for the time being, but you can bet I will be keeping a close eye on it!

Your thoughts or comments are welcome!

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Verizon Open to Merger

“I believe Verizon has been blinded by the light of AT&T”

Verizon to Merge with Disney or Comcast ?

Maybe in the future !

Verizon’s (VZ)  CEO Lowell McAdam has stated publically he is open to a Merger with any large Media or Telecom Players including Disney (DIS)  or Comcast (CMCSA).  he wants to “reset” the company’s course.

I believe Verizon has been blinded by the light of AT&T (T) lately as it has made some very important strategic acquisitions moves including moving into Mexico, purchasing Direct TV , Time Warner and most recently its deal to acquire Straight Path Communications for its valuable bandwidth.  Verizon seems to be a little lost in the wilderness with puzzling acquisitions like AOL and Yahoo, while AT&T seems to be directly focused  on a clear path to the future.

There is certainly exciting changes coming to the World of Telecoms as Communications and entertainment merge into a single entity.

I own both AT&T and Verizon but I am a clear believer in AT&T as of now. While Verizon, Disney and Comcast have all spiked on the news today , I would caution that Verizon has not even had talks with any potential suitors as of yet and appears to be more of an act of desperation on the part of Verizon.

 

Thoughts or Comments are Welcome !