Joe Malone’s Liberty Global Inc. announced that it will be acquiring Virgin Media Inc. in a $16 billion deal.
According to the cable TV operator, it will be paying $5.9 billion in cash. The rest of the payment will be in stock for Virgin Media. The development will up the competition between Malone and fellow billionaire Rupert Murdoch. The new deal will hinder BSkyB, the British satellite TV provider in which Murdoch’s company owns a 40 percent stake.
Michael Fries, chief executive at Liberty, said: “Liberty Global together with Virgin Media ia s powerful combination. In fact, it hits the mark on just about every strategic and operating criteria we have established for our company and provides significant benefits to Virgin Media subscribers and investors.”
According to Fries, approximately 80 percent of Liberty Global’s revenue will come from Britain, Germany, Belgium, Switzerland and the Netherlands once the deal is put in motion.
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