Liberty Global Inc.
) received a shot on its arm as the European Union Regulatory
Authority cleared its proposed acquisition of
Virgin Media Inc.
). On Feb 2013, Liberty Global came out with a joint press
statement with Virgin Media that the two companies have entered
into an agreement par which, Liberty Global will 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
After the acquisition, Liberty Global will become the largest
cable TV MSO (multi service operator) of the world,
), 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. In U.K.,
the merged entity will become a formidable challenger to BSkyB,
the largest pay-TV operator of the U.K. BSkyB is partially
Liberty Global is gradually establishing a strong foothold in
the European cable TV market. 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.
In the coming years, we believe Liberty Global's revenue 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 spurted 15.8% year over year in 2012.
The company is also concentrating on its double play product,
Internet and telephony, which has the potential to expand.
Double play customer base penetration nudged by 5.6% year over
year in 2012.
COMCAST CORP A (CMCSA): Free Stock Analysis
LIBERTY GLBL-A (LBTYA): Free Stock Analysis
NEWS CORP INC-A (NWSA): Free Stock Analysis
VIRGIN MEDIA (VMED): Free Stock Analysis
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