Verizon has moved on from plans to acquire cable companies: CEO

Markets Reuters

In this Tuesday, May 2, 2017, photo, Verizon corporate signage is captured on a store in Manhattan's Midtown area, in New York. On Tuesday, June 13, 2017, Verizon took over Yahoo, completing a $4.5 billion deal that will usher in a new management ... team to attempt to wring more advertising revenue from one of the internet’s best-known brands. Tuesday’s closure of the sale ends Yahoo’s 21-year history as a publicly traded company. It also ends the nearly five-year reign of Yahoo CEO Marissa Mayer, who isn’t joining Verizon. (AP Photo/Bebeto Matthews) (Copyright 2017 The Associated Press. All rights reserved.)

Verizon Communications Inc said on Thursday that it has moved on from plans to acquire cable companies and instead will focus on building out its own fiber infrastructure.

Continue Reading Below

Speculation over a tie-up with Charter Communications Inc was building up after Chief Executive Lowell McAdam told Wall Street analysts last year that such a deal would make "industrial sense."

McAdam said on Thursday at the Goldman Sachs Communacopia Conference that Verizon is more interested in building up its fiber infrastructure.

"We did, I guess, about a year ago, go through a process of taking a look at cable companies. But the fiber infrastructure isn't there," McAdam said.

In April, Verizon agreed to buy optical fiber from Corning Inc for at least $1.05 billion over the next three years to improve its network infrastructure.

More from FOXBusiness.com...

McAdam said at the conference on Thursday the company would be acquiring content for its Oath business and a content deal is expected by the end of September.

Continue Reading Below

Verizon bought Yahoo's core business for $4.48 billion in 2016. It then combined Yahoo with AOL to form a venture called Oath.

McAdam said the company expects cost savings of $10 billion over four years from operating expenses and capital expenses, which would fund their dividends in 2022.

Shares of the company were marginally down at $47.06 in morning trading. 

(Reporting by Laharee Chatterjee in Bengaluru; Editing by Shounak Dasgupta)

What do you think?

Click the button below to comment on this article.