Verizon Wireless CEO Not Concerned with Major Acquisitions by Competitors
Verizon Communication’s Chief Executive Lowell McAdam said this week the company does not have plans to take on a big strategic merger or acquisition in the near future, reportedReuters. “We don’t feel the urgency that seems to be out there in the analyst community, the banking community, and the media,” said McAdam.
Verizon, the number one wireless provider in the USA, reported its first-ever quarterly loss in April from its key customer base, monthly subscribers, Inside Towers reported. Some believe that Verizon needs an acquisition plan to diversify its portfolio and differentiate itself from smaller competitors in the oversaturated U.S. market for wireless mobile provider networks.
Verizon’s primary competitor, AT&T Inc, has plans to acquire Time Warner Inc for $85.4 billion. This deal will give AT&T control of the cable channel HBO and other coveted media outlets, reported Reuters. In addition, Charter Communications Inc. and Verizon competitor Comcast Corp. announced they’re cooperating in a joint wireless venture, Inside Towers reported. The deal aims to cut costs and allow the cable company to make a foray into the wireless market. This agreement also limits both companies from partnering with a wireless provider on their own.
According to McAdam, this is not a concern. He believes both companies will launch wireless services using Verizon’s airwaves. “Frankly, we encouraged them to work together because dealing with one customer is a lot better than dealing with multiple customers,” stated McAdam.