Is it because the top 3 cable companies are launching an MVNO business? Or is it because AT&T bought DirecTV and now TimeWarner? Or is it because last year Verizon had a net loss of 282,000 Broadband Customers? Why is Verizon reportedly courting to buy a cable company?
Verizon over the last 7 years has sold off three chunks of its wireline business to Frontier, Fairpoint and Frontier. Did they need the money to buy all the spectrum that they have been hoarding?
They had Verizon Business (VZB) up for sale. That old MCI division. Then they bought XO, supposedly for the access to spectrum leases.
VZW was even the cheerleader for 5G, saying that it would replace wireline broadband. (Others ask that question HERE).
Maybe it is merger mania consuming Lowell (VZ CEO). Maybe he wants to invest in Liberty Media now that they own Live Nation, Formula 1, the Braves, SiriusXM, and more. "The Formula One Group consists of Liberty Media Corporation's subsidiary Formula 1, its interest in Live Nation Entertainment, Inc., other minority investments, including Time Warner Inc. and Viacom Inc., and an inter-group interest in the Braves Group." With $115 Billion in debt at approximately 5%, VZ is using up cash to pay $6B in interest payments per year. Maybe they want a good investment that will bring in more than 7% annually (and Yahoo and AOL just won't cut it).
We'll see. Who knows anymore? The M&A is coming faster than anyone can keep track.
