Verizon's CEO Open To Merger Talks With Disney, Comcast, CBS

In the face of a changing industry, Verizon Communications (NYSE:VZ) is apparently open to discussing merger possibilities with a variety of media and telecom giants.

According to a report from Bloomberg News, Verizon Chief Executive Officer Lowell McAdam would welcome merger talks with Comcast Corp. (NASDAQ:CMCSA) , Disney (NYSE:DIS) , or CBS Corp. (NYSE:CBS) .

Of course, Verizon is no stranger to mergers and acquisitions. After months of sorting out prices, Verizon agreed on a nearly $350 million discount for Yahoo’s (YHOO) core business; the deal was originally valued at about $4.8 billion when it was announced last summer (read more: Yahoo (NASDAQ:YHOO) Gets Boost on Updated Verizon Buyout Deal).

McAdam’s notion that the telecom industry is evolving is certainly valid, and it looks like M&As are how the giants are choosing to deal with shifting consumer demands.

Just last week, fellow wireless carrier AT&T (NYSE:T) bought Straight Path Communications (NYSE:T) in order to bolster its 5G portfolio—just months after announcing a plan to merge with Time Warner (NYSE:TWX) . Verizon has also previously been linked with Charter (NYSE:T) , although any talks between the two seem to have fizzled out.

Verizon’s decision to buy Yahoo, although controversial, fits with McAdam’s narrative that a changing industry demands a new company focus. Although its search engine is a shell of its former self, Yahoo owns quite a bit of media, and Verizon might be able to unlock additional value in assets like Yahoo Finance and Yahoo Sports.

Similarly, a merger with a media behemoth like Disney or CBS could make the new company a telecom-entertainment giant. As users move to mobile streaming, owning both the content and the network by which the content is being accessed could prove to be valuable.

Nevertheless, a merger with Comcast could be the most realistic, as the two companies seem to have a friendly relationship. Comcast recently unveiled its new Xfinity Mobile plan, a wireless phone service that will leverage Verizon’s network when not in range of Xfinity Wi-Fi (also read: Everything You Need to Know About Comcast's Xfinity Mobile).

In an interview with Bloomberg News, McAdam said he would be open to a talk with Comcast CEO Brian Roberts.

“If Brian came knocking on the door, I’d have a discussion with him about it,” McAdam said. “Given what I know about architecture, financial requirement, cultural fit, there’s never a dream deal.”

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