It appears that the market welcomes the possible merger of two huge telecommunication companies. The price of Charter's stock skyrocketed following the news that Verizon is planning to make an offer to acquire the telecommunication company that recently bought Time Warner Cable.
As reported by Tech Times, the resulting company if Verizon and Charter join forces would lead to a company that could dominate the communications industry in terms of wired and wireless. Reports say that the CEO of Verizon, Lowell McAdam, has already initiated merger discussions with Charter.
JPMorgan predicted that T-Mobile will become part of the potential merger one way or another. JPMorgan projected that President Donald Trump's administration would spur the merger of the two communications company on expectations that the new administration would be friendlier to businesses.
Earlier reports say that Verizon was choosing between Charter and Comcast as it plans to take advantage of the friendly business environment under Trump's administration. Yakima Herald reported that other communications companies may be forced to consolidate if the deal pushes through.
Verizon has 114 million cellphone subscribers, 4.6 million television customers and 7 million Internet subscribers, while Charter has 17 million television customers and 21 million Internet subscribers. The combination of the two companies will definitely expand their customer base and will leave other communication companies with little leverage to compete.
Verizon has been reportedly facing some issues with its wireless division. It is not clear how Charter will be able to help, but the addition of another communication company with a large customer base would definitely give Verizon some synergy that it can use to boost its divisions. The merger poses a threat to other communication companies like AT&T and T-Mobile, two other players in the wireless industry.
Jobs & Hire previously reported that Verizon will release Samsung's Note 7 bricking update.