Disney Gains on Verizon Takeover Talk

Shares of Walt Disney Co. on Monday closed at about 1 percent higher amid reports that Verizon Wireless may be looking into purchase the Burbank entertainment conglomerate. The speculation stemmed from an article published by the New York Post over the weekend. “One rumor making the rounds last week was that Verizon may be eyeing a Disney purchase,” the Post reported. “While that sounds fantastical, a well-placed banker told On the Money not to count Verizon out.” However, the Post’s article drew skepticism from analysts. Barron’s reported that a Wells Fargo media analyst “flat out rejected the possibility,” and another analyst from RBC Capital advised its readers to “assign the Post’s report a low probability.” Verizon is not new to large acquisitions, however. Last summer the telecommunications giant announced that it would buy Yahoo Inc. for $4.8 billion in cash. Shares of Disney (DIS) on Monday closed up $1.21, or just more than 1 percent, at $107.46 on the New York Stock Exchange.