Virgin Media to be sold to Liberty Global for $23bn

Merger will create world's largest broadband provider, it is claimed.


Broadband provider Virgin Media is set to be acquired by US cable company Liberty Global in a deal worth $23.3 billion.

The companies claim the merger will result in the creation of the world's largest broadband company, covering 47 million homes across 14 countries.

Under the terms of the deal, Virgin Media shareholders will receive $17.50 in cash, 0.2582 Liberty Global Series A shares and 0.1928 Liberty Global Series C shares for each Virgin Media share they own.

Mike Fries, president and chief executive of Liberty Global, said the deal would add significant scale to his firm's European operations, and will result in 80 per cent of its revenues coming from five European countries.

"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 Fries.

"Virgin Media will be complementary to our own organic revenue and growth profile, while providing attractive free cash flow enhancement to our shareholders.

"As a result we intend to increase our commitment to share buybacks going forward with an initial target of approximately $3.5 billion over a two-year period upon closing," Fries concluded.

Neil Berkett, chief executive of Virgin Media, added: "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 also announced its full-year results for 2012, which showed that revenue was up 2.7 per cent on last year and topped 1.654m. Operating profit grew by 30 per cent to 699.1 million over the same time period.

Featured Resources

Defeating ransomware with unified security from WatchGuard

How SMBs can defend against the onslaught of ransomware attacks

Free download

The IT expert’s guide to AI and content management

How artificial intelligence and machine learning could be critical to your business

Free download

The path to CX excellence

Four stages to thrive in the experience economy

Free download

Becoming an experience-based business

Your blueprint for a strong digital foundation

Free download

Most Popular

What are the pros and cons of AI?
machine learning

What are the pros and cons of AI?

8 Sep 2021
Apple patches zero-day flaw abused by infamous NSO exploit

Apple patches zero-day flaw abused by infamous NSO exploit

14 Sep 2021
Google takes down map showing homes of 111,000 Guntrader customers
data breaches

Google takes down map showing homes of 111,000 Guntrader customers

2 Sep 2021