Verizon (NYSE:VZ) CEO Lowell McAdam shot down rumors that the company he helms would buy Disney (NYSE: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 (NASDAQ:AAPL) and Google (NASDAQ: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.
And AT&T (NYSE:T) is in the process of acquiring Time Warner (NYSE:TWX) for $85 billion. The deal is expected to be completed by year-end.