Liberty Global Inc.
) decided to enhance its shareholders' wealth. The company
declared that its board of directors has decided to authorize a
$3.5 billion stock repurchase program over the next two years.
The ongoing $1 billion stock repurchase program of the company
will no longer be applicable.
In Feb 2013, Liberty Global had decided to acquire a 100%
stake in the British cable MSO, Virgin Media, in a cash and
equity deal. On Jun 7, 2013, Liberty Global completed the
acquisition. The deal was worth around $15.8 billion or an
enterprise value of nearly $23.3 billion.
The acquisition makes Liberty Global the largest cable TV MSO
(multi service operator) in the world, surpassing
), the largest cable MSO in the U.S. Together, Liberty Global and
Virgin Media will have approximately 25 million subscribers
compared with nearly 22 million subscribers of Comcast. 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
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
Netherlands. Ziggo also competes with telecom operators such as,
Royal KPN N.V. and
Vodafone Group plc.
). Liberty Global currently has a Zacks Rank #3 (Hold).
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. The acquisition of Virgin Media will enable
Liberty Global to explore U.K., which is one of the most
lucrative markets in Europe.
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