Verizon to buy DirecTV? Analysts like the idea.
All this talk started when Verizon’s CEO indicated that he wanted to “make video the company’s core product for its fixed-line business.” The Wall Street Journal then kindly points out the obvious that the best way to do that is to scoop up a satellite company. DirecTV would be the logical choice over Dish Network as it’s better performing and has a larger subscriber base.
Of course DirecTV or Verizon haven’t indicated that this is currently in the works, but the WSJ does have a point. Verizon’s fiber optic service, FiOS, is almost universally loved for its fast Internet, wide range of high-def stations and modest price. However, it’s been slow to roll out to new markets because fiber optic cable has to be ran to each home, which is a timely and costly endeavor. Verizon probably doesn’t have any plans to scale back its FiOS expansion plans, but it will take the company a while to be a national player at the current rate. Buying DirecTV – or Dish Network – is the fastest way to the top.