Liberty Global Inc. ( LBTYA ) finally completes the acquisition of the British cable MSO, Virgin Media. On Feb 2013, Liberty Global decided to acquire a 100% stake in Virgin Media in a cash and equity deal. The deal is worth around $15.8 billion or an enterprise value of nearly $23.3 billion. <\/p>\n
On Jun 7, the company declared that it has finally received shareholders' approval, regulatory approvals including both the U.S. and European and completed other customary closing conditions to acquie Virgin Media. <\/p>\n
The acquisition makes Liberty Global the largest cable TV MSO (multi service operator) in the world, surpassing Comcast Corp. ( CMCSA ), the largest cable MSO of the U.S. Together, Liberty Global and Virgin Media will have approximately 25 million subscribers compared with nearly 22 million subscribers of Comcast. <\/p>\n
In the U.K., the merged entity will become a formidable challenger to British Sky Broadcasting Group plc., which is the largest pay-TV operator in the U.K. and is partially controlled by News Corp. ( NWSA ). <\/p>\n
Liberty Global is gradually establishing a strong foothold in the European cable TV market. On Apr 2013, Liberty Global acquired a 12.65% ownership of Ziggo, the largest cable MSO in the Netherlands. Ziggo also competes with telecom operators such as, Royal KPN N.V. and Vodafone Group plc. ( VOD ). Liberty Global currently has a Zacks Rank #3 (Hold). <\/p>\n
We believe that the long-term business fundamental of the company is very intriguing, primarily due to a strong demand for its digital cable-TV services, faster broadband and triple-play bundled offerings. Acquisition of Virgin Media will enable Liberty Global to explore U.K., which is one of the most lucrative markets in Europe. <\/p>\n
In the coming years, we believe Liberty Global's revenues will continue to benefit from a 'triple play' of video, broadband, and telephone, as it signs up more \"bundled\" customers in Europe. The triple-play customer base grew 13.8% year over year in the first quarter of 2013. <\/p>\n
The company is also concentrating on its double-play product, Internet and telephony, which has the potential to expand. The double-play customer base penetration nudged by 5.9% year over year in the last reported quarter. <\/p>\n
COMCAST CORP A (CMCSA): Free Stock Analysis Report <\/p>\n
LIBERTY GLBL-A (LBTYA): Free Stock Analysis Report <\/p>\n
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Liberty Global Gets Virgin Media - Analyst Blog<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Liberty Global Inc. ( LBTYA ) finally completes the acquisition of the British cable MSO, Virgin Media. Continue reading