>> Speculation building Thursday that Verizon is eyeing an offer for Charter Communications though sources tell Reuters that no official offer has been made yet. In theory, such a deal makes sense but Reuters Breakingviews columnist Jen Saba says Verizon's track record is problematic.>> Verizon has been all over the map in terms of its acquisitions lately.
Not that long ago, it spent $130 billion to buy rest of Vodafone. It was a wireless strategy that's now showing signs of decline. They're going after AOL, they went after Yahoo, bits of Yahoo, we're not even sure if that's going to happen. Now they're lurching towards a cable company, so it just seems like they're going all over the map in terms of their strategy and search for new business.
>> Charter is fresh off of an acquisition of its own, having just completed the purchase of Time Warner Cable. If the two do make it to the altar, it would combine Charter's beefed-up cable and broadband customers with Verizon's 114 million mobile phone subscribers, as well as the millions using its FIOS fiber optic cable and Internet service.
Similar to what AT&T did with its purchase of DirecTV in 2015. But all is not well with either company. Verizon's core mobile phone business is facing cutthroat competition and Charter's key moneymaker is being threatened by the rise of cord cutters and over the top video. And there are other risks.
>> I think Verizon's probably making the bet that it's uncertain regulatory times at the moment. We don't know what's going to happen. For example, we have AT&T and it's acquisition for Time Warner still sitting in the pipeline waiting for government approval. We don't know what Donald Trump's administration wants to do with that, if they'll block that approval or not.
>> But none of that scaring off investors, shares of Charter surging to an all time high, while Verizon stock is little changed. Quite unusual for a company likely preparing to move on an $85 billion target.