On Thursday, a report from The Wall Street Journal claimed Verizon is exploring a combination with Charter Communications.
Verizon CEO Lowell McAdam approached officials “close to Charter,” according to the report, and is working with bankers to explore a potential deal.
The talks are preliminary, the report said.
Verizon has a market capitalization of $203 billion, while Charter is valued at nearly $84 billion.
Shares of Charter Communications jumped nearly 10 percent pre-market trading Thursday following the report of the potential deal with Verizon, their highest rise intraday since August. While Verizon shares lost more than 2 percent following the news.
Verizon and Charter declined to comment on the report.
The largest wireless carrier Verizon has been looking for a company to help build its media and content businesses, as stronger competition is on the rise.
Verizon boasts a combined 10.4 million FiOS customers between broadband and video, while Charter services a combined 38 million customers with its Internet and TV offerings.
A possible merger would give Verizon a boost as it battles with rival AT&T, the owner of DirecTV satellite television service.
Verizon has been negotiating with Yahoo! Inc. in a $4.8 billion deal, to acquire the company’s core internet business although negotiations suffered difficulties due to the email hacks at Yahoo.