Broadband News

Liberty Global and Virgin Media boards approve deal

If the news coming out of CNBC and reported by David Faber is true then the two boards of Virgin Media and Liberty Global for an acquisition by Liberty Global based around a mixture of cash and stocks.

Obviously it is far to early to speculate on what the changes will mean if any for Virgin Media customers, but it is feasible that the acquisition may change how it views network expansion, and see the cable network once more start expansion after some years of a relatively stationary footprint.

Comments

Mind boggling considering the fact they have lost their fibre broadband monopoly thanks to openreach growing, TV competition is getting stronger with BT growing along with streaming alternatives like netflix, lovefilm etc. Virgin Media was going to go down and out without some help and a cash injection but the outlook still does not look too rosy.

  • Joppy
  • over 4 years ago

Hopefully this brings wholesale to the UK's cable network.

  • timmay
  • over 4 years ago

Now on BBC News
http://www.bbc.co.uk/news/business-21347814

  • uniquename
  • over 4 years ago

Liberty Global Press Release
http://www.lgi.com/PDF/press-release/02-05-Final-Transaction-Announcement.pdf

  • uniquename
  • over 4 years ago

seems overvalued?

strong FTTC competition now and dont ntl still have debts?

  • chrysalis
  • over 4 years ago

All too late for the HMG/BDUK 'scheme' I fear, but surely it adds to the call for a radical re-think of the waste of the money that is going into an antiquated FTTC network? Even a Tory party think tank is calling for a stop on state funding to the scheme after 2015. Is anyone listening?

  • mikejp
  • over 4 years ago

@mikejp.
But VM Cable is FTTC. (FTTN to be precise but as laid out in this area not much different). So what are you saying?

  • uniquename
  • over 4 years ago

Actually the deal is bang on the money.

Valuations for technology type companies are high but things like MS and Apple are set at 20 times their annual profit which for VM puts it at $23 Billion.

  • undecidedadrian
  • over 4 years ago

"FTTN to be precise" - exactly. Compare the delivery to a 15mb 'floor' from Infinity. I would not be surprised if Broadband Bill is not 'passing' a few VSLAMs, let alone 'premises'.

Time will tell - this may all just be a hot flush, but it could potentially uproot the whole 'plan' - where is Peter Cochrane when you need him?

  • mikejp
  • over 4 years ago

FTTC has a "floor" of 15meg yet VM's FTTN "floor" is only 2meg.

And there hasn't been any reports of cabinet saturation on FTTC like there has been on VM's FTTN. So perhaps it is cable that is out of date?

  • undecidedadrian
  • over 4 years ago

undecidedadrian- where did you get '2meg' from for VM? I thought it was 24mb.

  • mikejp
  • over 4 years ago

"antiquated FTTC network?" Surely its a stepping stone to full FTTP for those that want it?

  • GMAN99
  • over 4 years ago

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