Liberty Gold agrees Virgin Media acquisition
Just a day after confirming that it was in talks over an acquisition by US company Liberty Gold, Virgin Media has agreed a cash and stock deal worth $23.3 billion.
According to the press announcement, the deal will deliver Liberty Gold access to Virgin's 25 million customers from across 14 countries.
Mike Fries, President and CEO of Liberty Global, described the acquisition of Virgin Media to its European operations as "a natural extension of the value creation strategy" that the company had been following for seven years.
"Virgin Media will add significant scale and a first-class management team in Europe's largest and most dynamic media and communications market. After the deal, roughly 80% of Liberty Global's revenue will come from just five attractive and strong countries - the UK, Germany, Belgium, Switzerland and the Netherlands."
Fries added that once fully integrated, it was expected that Virgin Media would generate $180 million each year and supplement the company's B2B offering.
Neil Berkett, CEO of Virgin Media, added: “Over the past six years, Virgin Media has transformed the digital experience of millions of customers, catalyzed a deep-rooted change in the UK’s digital landscape and delivered impressive growth and returns for our shareholders. I’m confident that this deal will help us to build on this legacy. Virgin Media and Liberty Global have a shared ambition, focus on operational excellence and commitment to driving shareholder value. The combined company will be able to grow faster and deliver enhanced returns by capitalizing on the exciting opportunities that the digital revolution presents, both in the UK and across Europe.”
The deal has yet to be agreed by shareholders from both companies, which includes US billionaire John Malone, who owns over 35 per cent of Liberty Gold.