US Cable Giant Liberty Global buys Virgin Media

[Stephen]

Its way too early to answer any of those questions Itshim. The deal will not be completed till about July I would think.

[BenMcr]

Originally Posted by Stephen

Its way too early to answer any of those questions Itshim. The deal will not be completed till about July I would think.

Although Liberty have already said they have no current plans to change the name or TiVo

http://www.ft.com/cms/s/0/6e390f1a-7...44feab49a.html

John Malone’s Liberty Global committed to keeping the Virgin Media brand in the UK as it confirmed an agreed $23.3bn cash and stock bid for the UK cable operator.

“I do not see us doing anything in this market that’s meaningfully different from what Virgin’s been doing with respect to premium content,” he said, adding that he remained committed to Virgin Media’s connected TV service, TiVo.

[Tarantella]

Originally Posted by BenMcr

Nope - and doesn't apply to the emails anyway

Of course the Patriot act applies to emails and to VM's email service which is provided by Google, an American company, with it's HQ in America.

[BenMcr]

Originally Posted by Tarantella

Of course the Patriot act applies to emails and to VM's email service which is provided by Google, an American company, with it's HQ in America.

However Google has a European HQ in Ireland so has to comply with EU law and America comes under the 'Safe Harbour' agreements http://www.soas.ac.uk/infocomp/dpa/policy/outside/ so any request under the Patriot act would conflict with EU law

[Horizon]

From the live webcast on now:

Neil Berkett to leave, his wish, once the deal is done. Liberty keen to retain the rest of the vm board and use their expertise across the combined group.

Combined company will be world's largest cableco, bigger than Comcast.

Liberty broadly intend to leave vm alone, they won't be changing vm's network, or trying to merge vm's tech with other european operations.

Liberty will use vm's expertise in mobile/quad play across the combined business.

Liberty Global and Vm will become a new UK based company, with HQ still in US and listed on nasdaq.

Liberty to put $3 billion additional debt onto vm's books.....its tax efficient, so they say, for them to do it.

Liberty agree with vm's strategy of not bidding for premium content.

[Tarantella]

Originally Posted by BenMcr

However Google has a European HQ in Ireland so has to comply with EU law and America comes under the 'Safe Harbour' agreements http://www.soas.ac.uk/infocomp/dpa/policy/outside/ so any request under the Patriot act would conflict with EU law

But "Safe Harbour" is not that "safe".


http://www.zdnet.com/blog/igeneratio...s-eu-data/8805

[Smilermal43]

http://www.lgi.com/PDF/presentations...estor-Call.pdf

Might be worth taking a read through

[Itshim]

Originally Posted by Stephen

Its way too early to answer any of those questions Itshim. The deal will not be completed till about July I would think.

Whilst -

---------- Post added at 14:51 ---------- Previous post was at 14:50 ----------

Originally Posted by Horizon

From the live webcast on now:

Neil Berkett to leave, his wish, once the deal is done. Liberty keen to retain the rest of the vm board and use their expertise across the combined group.

Combined company will be world's largest cableco, bigger than Comcast.

Liberty broadly intend to leave vm alone, they won't be changing vm's network, or trying to merge vm's tech with other european operations.

Liberty will use vm's expertise in mobile/quad play across the combined business.

Liberty Global and Vm will become a new UK based company, with HQ still in US and listed on nasdaq.

Liberty to put $3 billion additional debt onto vm's books.....its tax efficient, so they say, for them to do it.

Liberty agree with vm's strategy of not bidding for premium content.

[denphone]

So in other words not much will change in the short term and its just carry on as normal with a steady hand on the tiller.

[Horizon]

Webcast very interesting. A very good presentation from Liberty's boss Mike Fries, a cool, calm person and his 50th birthday today. He called the vm deal "a nice present".

I think and despite what was said in the webcast, its far too early to see what the impact will be on vm and for us as customers.

As Fries said, Liberty do not have a major pressence in the UK, so its not like the ntl/telewest merger, or previous cableco mergers. As far as the UK goes, there's nothing to merge. The wider picture, though, is unclear.

Fries pointed that the European market is fragmented and underperforming and I believe he intends to use VM as best practice across all of Liberty's operations in Europe. As an example, Liberty has a lot of analogue subscribers and they're keen to learn from virgin how vm did things here.

US billionaire John Malone, major shareholder in Liberty, arch rival to Murdoch, had little to say.

To all, intents and purposes, Fries is now VM boss and in charge of UK cableco but whatever name it will be called. He said the VM name will remain but of course he also said that Liberty will redomocile to the UK and become a subsidary of a new, as yet unnamed company.

I think, long term, Liberty's operations will come under one brand, whether that be Virgin (I think not), UPC, Cablecom, Unity Media etc time will tell.

Liberty keen to buy more european assets.

---------- Post added at 15:10 ---------- Previous post was at 15:07 ----------

Originally Posted by denphone

So in other words not much will change in the short term and its just carry on as normal with a steady hand on the tiller.

That's my impression, yes. Liberty are very happy with vm and how its set up.

As I tried saying to a poster last night, Liberty have been involved in uk cable for a long, long time. They know what's what and it won't be UPC guys telling vm what to do, but probably the other way around by all accounts.

[MalteseFalcon]

So basically, they spend a few billion on purchasing Virgin and hen can't be bothered to do anything to improve on the product? Great. Way to waste a few billion dollars.

[BenMcr]

Originally Posted by MarkC1984

So basically, they spend a few billion on purchasing Virgin and hen can't be bothered to do anything to improve on the product? Great. Way to waste a few billion dollars.

They said no such thing. What they have said is they see no reason to change the improvement plan Virgin Media are already on

[mertle]

Originally Posted by denphone

So in other words not much will change in the short term and its just carry on as normal with a steady hand on the tiller.

raises more questions of why has malone taken over the company if he not looking to progress it.

Another is now planned operational upgrades will they still go ahead or be shelved.

Said in my post I was wary of rejoicing its always case of careful what you wish for. VM and NTL before where no angels but now fearful future of VM.

Worry is this 3bn extra debt just for the privelage new owners, where its come from liberty accounts?. Why berkett wanting out, does he have issues. Will he spill beans what he dont like.

[Horizon]

Originally Posted by MarkC1984

So basically, they spend a few billion on purchasing Virgin and hen can't be bothered to do anything to improve on the product? Great. Way to waste a few billion dollars.

There seems to be two main aims:

Vm, because of its debt and the way its set up is VERY tax advantageous. You don't pay corp tax, so liberty have kindly "handed" vm $3 of their debt.

Liberty want to use vm's expertise across its whole business, ie they don't have a mobile business of any worth. Vm do.

Liberty said they will continue to invest in vm's network.

[denphone]

Windall for 4000 Virgin Media staff after Liberty Global deal.

http://www.telegraph.co.uk/finance/n...obal-deal.html

More than 4000 staff at Virgin Media will share in a major windfall after the company’s sale to US cable television giant Liberty Global, including boss Neil Berkett who will take more than $65m (£41.5m) off the table.