), a leading cable TV operator in Europe and Latin America, is
all set to fortify its foothold in the core North European
markets. Recently, Bloomberg reported that the company is close
to reaching an agreement to acquire full control of Ziggo N.V.,
the largest cable MSO (multi service operator) in Netherlands. In
Oct 2012, Liberty Global's first attempt to acquire Ziggo
entirely was promptly rejected by the latter as the financial
term was inadequate.
At present, Liberty Global holds a 28.5% stake in Ziggo. The
financial terms on which the two entities are currently
negotiating for the remaining 71.5% stake of Ziggo are yet to be
disclosed. However, several industry researchers have estimated
that the company may need to pay $6.8 - $7 billion more.
Liberty Global already has a strong presence in the Dutch
cable-TV market through its UPC Broadband Holding BV unit, which
is the second largest cable MSO in that country.
Liberty Global is trying to extensively penetrate the European
region with its bundled video, voice and Internet (data)
services. The European markets are still relatively untapped for
this unique triple-play offering. The company currently holds a
58.4% stake in the Belgian cable TV operator Telenet Group
A merger between Liberty Global and Ziggo will create a cable
TV giant in Netherlands with approximately 10.8 million revenue
generating units. Ziggo also competes with telecom operators such
as Royal KPN N.V. and
Vodafone Group plc.
In Jun 2013, Liberty Global acquired a 100% stake in the
British cable MSO, Virgin Media. Together, Liberty Global and
Virgin Media had approximately 24.5 million subscribers at the
end of third-quarter2013.
In the U.K., the merged entity poses serious competitive
threat to British Sky Broadcasting Group plc and
BT Group plc.
). British Sky Broadcasting Group is the largest pay-TV operator
in the U.K. and is partially controlled by
). Currently, Liberty Global has a Zacks Rank #3 (Hold).
BT GRP PLC-ADR (BT): Free Stock Analysis
LIBERTY GLBL-A (LBTYA): Free Stock Analysis
NEWS CORP NEW-A (NWSA): Free Stock Analysis
VODAFONE GP PLC (VOD): Free Stock Analysis
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