AT&T’s Time Warner deal looks like bad news for Verizon

AT&T's $85.4 billion megadeal to acquire Time Warner is an unprecedented bid to diversify the telecom giant as network operators nationwide scramble to marry their communications pipes with exclusive content. For many of these firms, it's no longer enough to be the conduit to TV shows, films and other creative media. A growing number of them want to be making money from the production and cross-promotion of content, too.

Against this backdrop is Verizon, AT&T's biggest rival in the wireless industry, which has made its own moves toward gaining access to content. But some analysts say the outlook for Verizon is beginning to look gloomier. “You've got the big-league players, and you've got the second-string players,” said Jeff Kagan, an independent telecom analyst. “Verizon — the moves they've made, they make it look more like a second-string player.”