Technology

Verizon for Disney? Do Your Own Diligence, Says RBC

RBC Capital's media analyst Steven Cahall today casts a jaundiced eye on a report Saturday by the New York Post's Claire Atkinson suggesting Verizon Communications (VZ) is interested in purchasing Walt Disney (DIS).

Atkinson refers to speculation last week that Verizon "may be eyeing a Disney purchase," and then adds, "While that sounds fantastical, a well-placed banker told On the Money not to count Verizon out."

Cahall warns you might want to find your own sources, since standards at The Post are not particularly high:

Yesterday the NY Post reported that a "well-placed banker" (probably well-placed at 5th Avenue's Polo Bar in a pair of brightly colored pants) said not to count Verizon out of a potential bid for Disney. Though not fake news, we think the Post's burden of legitimacy for publishing such ideas is below that of publications like the WSJ, Reuters and Bloomberg. But to its credit, we note that it occasionally gets these M&A calls right: for example, we think it was one of the first publications to break the news that CBS and Viacom were being asked to hold combination talks last summer, following its investigative efforts into media moguls over martinis the 21 Club. We'd thus advise investors to assign the Post's report a low probability, but perhaps do their own channel checks at the The Algonquin, The Grill and Monkey Bar.

Verizon shares today are up 12 cents at $44.78, while Disney shares are up $2.02, or 2%, at $108.27.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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