Liberty Global to buy Virgin Media for $23.3bn

[gmb45]

Virgin Media was created from the merger of NTL and Telewest, and Richard Branson's Virgin Mobile

US billionaire John Malone's cable group, Liberty Global, has agreed to buy the UK's Virgin Media in a cash and stock deal worth $23.3bn (?15bn).

It will create the UK's second biggest pay-TV business after BSkyB.

The deal, subject to shareholder and regulatory approval, puts Mr Malone in direct competition with Rupert Murdoch, whose media empire owns 39% of BSkyB.

Liberty Global already has operations in various European countries including Germany and Belgium.

"Adding Virgin Media to our large and growing European operations is a natural extension of the value creation strategy we've been successfully using for over seven years," said Mike Fries, chief executive of Liberty Global.

Alongside the announcement of the deal, Virgin Media reported its operating profit rose nearly 30% to ?699.1m last year.

It said it added a record 88,700 new customers to its cable business during the year.

Shares jump

Neil Berkett, chief executive of Virgin Media, said: "The combined company will be able to grow faster and deliver enhanced returns by capitalising on the exciting opportunities that the digital revolution presents, both in the UK and across Europe."

Virgin Media was created from the merger of NTL and Telewest, and Sir Richard Branson's Virgin Mobile in 2006.

As part of that deal Sir Richard retained a 3% stake in the company, which has a 30-year brand licensing agreement with his Virgin Group.

Mr Malone, who is the chairman of Liberty Global, clashed with News Corp's Mr Murdoch in 2007 when the two companies vied for control of DirecTV Group, the largest US satellite TV broadcaster.

BSkyB leads the UK pay-TV market with 10.7 million customers compared with Virgin Media's 4.9 million.

Virgin Media's main listing is in the US on the Nasdaq technology stock exchange, where its shares jumped 17.9% on Tuesday amid speculation that a deal was imminent.

---------------------------------------------------------
BBC News - Liberty Global to buy Virgin Media for $23.3bn

[super jumbe]

About time Branson was only interested in more money?.

[nara]

About time Branson was only interested in more money?.

...and now he'll have even more money!

[chalky 4]

Dick Branson has about 3% of the shares and also gets a licence fee for the brand use. Lets hope his smug adverts are binned.

[gmb45]

branston 200 million richer ffs just heard it on radio

[johnboy1974]

Branston the shrewdie again.


Sent from my iPad using Tapatalk HD

[Kalipo]

SO its another british company gone.. ermmmm...

[jordigirl]

branston 200 million richer ffs just heard it on radio

does he own the pickle n all

its branson ya narna

[Shady]

branston 200 million richer ffs just heard it on radio

i dont understand your exasperation at this news? He started virgin as a schoolboy with nothing and look at him now.. fair play to the bloke.

[TheCoder]

SO its another british company gone.. ermmmm...

VM has effectively been owned by US equity firms since it was formed (and very nearly destroyed itself in the process - remember, they filed for bankruptcy protection in the US at one point). Its never really had much 'British' input which is one of the reasons its listed on the US stock exchanges. Even the old NTL/Telewest/C&W franchises were mostly US led.

Remember Branson only ever owned a very small minority shareholding of virgin media so has very little (if any) influence in their management. He was simply shrewd enough to offload his mobile business and the rights for the use of the VirginMedia name for vast sums of money.

Note, if the deal goes ahead, its likely the VirginMedia brand name will be dropped anyway. Thats libery globals usual strategy.

[firemouth]

branston 200 million richer ffs just heard it on radio

Oh the reports I read say he still has his stake, and the company will remain Virgin Media.
not sure which version is true though.

but does it really matter?
He created the brand and like any other patent holder, gets remuneration from those who use it.
with only a 3% stake, I doubt he could have affected the outcome.
as it would have been the shareholders en mass who accepted, well a majority.
or is that not how it works?

mind you if he did make ?200 million it would be nice if he paid his tax in the UK. which he doesn't.
He and his Virgin empire have been doing a "Starbucks" for many years now.