Verizon Communications chairman and CEO Lowell McAdam spoke with Jim Cramer of CNBC's "Mad Money" on Friday, and confirmed the company is considering a bid for Yahoo to be potentially placed within the AOL umbrella under CEO Tim Armstrong's leadership.

McAdam previously announced the company's strategy as being broken into three tiers: having great connectivity, owning platforms to drive traffic to its network, and owning content that supports its ecosystem.

This week, Yahoo's earnings report confirmed the company's dour prospects, and renewed questions about CEO Marissa Mayer's strategy. The company is shrinking headcount and cutting expenses, and also said it was mulling strategic alternatives—corporate code for selling assets or cutting a merger deal.

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When Cramer asked if Verizon would consider adding Yahoo to its three-tier strategy, McAdams responded "We have to understand the trends that we are seeing in some of their results now. But then, at the right price I think marrying up some of their assets with AOL under Tim Armstrong's leadership would be a good thing for investors."