Verizon (VZ) CEO Lowell McAdam shot down rumors that the company he helms would buy Disney (DIS) anytime soon or at all. FOX Business caught up with McAdam at the Allen & Company Sun Valley conference and asked whether the telecom and media giant would combine and he gave a firm “no”. Disney CEO Bob Iger is not attending the conference, according to Variety.
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Earlier this year, McAdam signaled that he would be open to acquisitions, as reported by Bloomberg. Since, investors have speculated on the price of a potential deal. According to Wells Fargo, a merger would be valued around $190 billion and may require Verizon, whose market value is $174 million, to take on too much debt.
A potential deal would give Verizon a lucrative library of content which it could distribute over its many channels. Even so, FOX Business’ Charlie Gasparino pointed out companies like Apple (AAPL) and Google (GOOGL) also have deep pockets and could potentially make a play for the mouse house. Also, each has different means of distribution which could be a strategic factor the companies may consider.
Deal making in the media sector has picked up. In June, Verizon completed its $4.5 billion acquisition of Yahoo’s operating business. The deal followed its $4.4 billion purchase of AOL.