Verizon Reportedly Eyeing Sprint Merger

Verizon has reportedly gained the blessing of wireless partner Vodafone to go ahead with plans to propose merger with Sprint, The Wall Street Journal reported Tuesday. A merger between the two companies would result in a wireless giant with over 65 million customers.

Sprint is already in talks with Nextel Communications over a proposed merger, and an announcement of a deal could occur as soon as Wednesday. The $36 billion merger of equals would create a new company called Sprint-Nextel.

But if Verizon does indeed make an offer, it could mean the agreement between Nextel and Sprint would be called off, sources familiar with the situation told the paper.

According to those same sources, Verizon has been eyeing a deal with Sprint for 18 months, and believes that any antitrust issues could be settled in Verizon's favor.

Despite Vodafone backing, however, it was still unclear if Verizon would make a bid for Sprint, the Journal said.