Feeds

What a Liberty: Virgin Media in buyout talks with telecoms giant

Flipping 'ell!

Boost IT visibility and business value

Virgin Media confirmed this morning that it is in buyout talks with cable giant Liberty Global.

In a brief statement to the City ahead of it full-year results tomorrow, Virgin Media announced:

Virgin Media confirms that it is in discussions with Liberty Global, Inc., a leading international cable company, concerning a possible transaction.

Any such transaction would be subject to regulatory and other conditions. A further announcement will be made in due course.

Shares in the telco jumped nearly 15 per cent to 2,825 pence on the London Stock Exchange immediately after VM, which is headed up by Neil Berkett, confirmed that it was talking to Liberty Global.

Virgin Media's market value is close to $10.4bn on Nasdaq and £7.8bn on the LSE. Reports suggested that its enterprise value could be as high as $20bn (roughly £12bn).

Englewood, Colorado-based Liberty Global operates in 13 countries and has about 20 million subscribers to its television, broadband and telephony products on its books. Most of its customers are in Europe.

The cable provider is run by billionaire John Malone and is the second biggest telco in the world behind US-based Comcast.

This isn't the first time Virgin Media has sought potential telecoms suitors. In 2007 - one year after the then debt-ridden telco was rebranded following NTL's merger with Telewest, Virgin.net and Virgin Mobile - the company hired investment bankers to canvass "strategic buyers" including Liberty Global in what was described at the time as a defensive move to see off private equity carpetbaggers.

Liberty Group has come sniffing around Virgin Media nearly a year to the day since the Hook, England-based ISP finally turned an annual profit. ®

Boost IT visibility and business value

More from The Register

next story
Scotland's BIG question: Will independence cost me my broadband?
They can take our lives, but they'll never take our SPECTRUM
Trying to sell your house? It'd better have KILLER mobile coverage
More NB than transport links to next-gen buyers - study
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
NBN Co adds apartments to FTTP rollout
Commercial trial locations to go live in September
Samsung Z Tizen OS mobe is post-phoned – this time for good?
Russian launch for Sammy's non-droid knocked back
Telstra to KILL 2G network by end of 2016
GSM now stands for Grave-Seeking-Mobile network
Seeking LTE expert to insert small cells into BT customers' places
Is this the first step to a FON-a-like 4G network?
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.