Verizon Communications Inc. (NYSE:VZ)‘s efforts to close a big acquisition deal seem to be shut down at least for a moment. The company, wireless giant, has in recent days been exploring possibilities of taking over Charter Communications Inc (NASDAQ:CHTR) as well as stakes in Twenty-First Century Fox Inc Class A (NASDAQ:FOXA). However, Matt Ellis, the CFO of Verizon says that such plans have been put on hold and the company will be going at it alone.
Verizon announced better-than-expected results for the first quarter. This prompted analyst to push Ellis about ongoing rumors that the company was planning to acquire a major media company like 21st Century Fox. A big portion of Rupert Murdoch’s entertainment business is being sold to Walt Disney Co (NYSE:DIS) for $52 billion. But according to reports, Verizon had made an earlier offer. Ellis declined to this saying that they were mere rumors.
However, after being pressed more on if the company was going to follow the example of other companies like AT&T Inc. (NYSE:T) who have bought major entertainment companies, Ellis said that they did not see anything worth taking over at the moment. AT&T is purchasing Time Warner Inc (NYSE:TWX) at $109 billion including debt. This deal is however embroiled in regulatory matters. The Justice Department has filed an antitrust case opposing the deal.
Ellis said that the current landscape is changing very fast and the company won’t make a move of acquisition at the moment. He however didn’t rule out the possibilities of exploring an acquisition in the near future.
According to Craig Moffett, an analyst at MoffettNathanson Research says that investors should support the idea of go-it-alone. He added that Verizon has what it takes to stand alone and succeed without the need to acquire another media company. Moffett noted that in an industry that is filled with M&A stories, Verizon is always at the center of M&A speculation. He added that these speculations are always caused by the fact that all potential sellers must have potential buyer.