Disney sees shares jump almost 2% following Verizon takeover rumors

Disney sees shares jump almost 2% following Verizon takeover rumors

Shares of The Walt Disney Company climbed 1.7% today (3 July) following reports that Verizon Communications is rumored to be considering purchasing the media company.

The New York Post reported the rumored deal over the weekend, when a “well-placed” banker told the paper not to count Verizon out of a takeover bid.

Verizon might be looking to take a lead from rival telco AT&T, which announced a takeover bid for Time Warner last year in order to swell its data and advertising capabilities with the addition of a content business.

Investors previously tipped Apple as a potential suitor for the media conglomerate. Should there be a deal, it would create a company worth $1trn with “almost limitless opportunities in content and technology”, according to a speculative analysis from RBC Capital Markets.

Verizon has just completed its acquisition of Yahoo leading to the creation of Oath, which merges Yahoo and AOL. The telco told press at the Cannes Lions that consolidation of the 50 technology brands and platforms under Oath would take place, in order to make it easier for people to buy across those platforms.

Verizon shares were flat in early trade, but have fallen 16% in 2017.

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