Verizon Exploring Possible Combination With Charter

Verizon is exploring a combination with Charter, the Wall Street Journal reported, in a deal that would create a telecommunications and cable giant and vault the combined company past Comcast as the No. 1 internet provider in the U.S.

Bloomberg cited that Verizon CEO Lowell McAdam has made a preliminary approach to officials close to Charter and the company is working with advisers to study a potential transaction, the WSJ reported, without disclosing sources, with no guarantee a deal will materialize. Charter and Verizon declined to comment on the report.

Shares of Charter rose as much as 8.9 percent while Verizon fell as much as 2.5 percent following the report. Verizon is the largest wireless carrier and second-largest telecommunications company behind AT&T Charter is the second-biggest cable operator, behind Comcast.