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Verizon CEO: We're not going to start making big media buys

CEO Lowell McAdam says the mega-deal makes sense for AT&T, but not for Verizon.

Verizon CEO Lowell McAdam comments on the AT&T-Time Warner deal.


Count Verizon CEO Lowell McAdam among the fans of AT&T's planned acquisition of Time Warner.

"It makes very good sense for AT&T," McAdam told the Intel Capital Global Summit, of AT&T's offer for Time Warner is $85.4 billion.

Big deals, McAdam told CNET, shake up the status quo and force companies to re-evaluate their positions.

That doesn't mean, however, that Verizon is going to ramp up its media acquisitions, he said. The wireless carrier is scooping up some media properties, like AOL and Yahoo. But those are for the relatively inexpensive price tags of $4.4 billion and $4.83 billion respectively.

McAdam's comments reflect an acknowledgement that both companies see an opportunity to disrupt the video business. Verizon sees an opportunity in digital media, while AT&T's approach is rooted in more traditional names like DirecTV and Time Warner, which boasts popular networks like HBO and CNN.

They also come after T-Mobile CEO John Legere also applauded the deal, though for decidedly different reasons. Legere believes a distracted AT&T will mean more customers coming over to his service.

McAdam said he believes the deal will disrupt the business models of content companies.

Consumers are increasingly less interested in large bundles of channels, he said. It's tough to shake things up without doing a combination like AT&T and Time Warner, he added.

His initial response to the announcement of the deal: "I wasn't surprised."