Will VM be short for Vodafone Media?

[1andrew1]

"Vodafone Group Plc (VOD) is exploring a combination with John Malone’s Liberty Global Plc (LBTYA) that would create Europe’s largest phone, Internet and TV company, worth more than $130 billion, people with knowledge of the matter said."
https://www.bloomberg.com/news/2014-...ty-global.html

A combination between LG and Vodafone has logic:
- Complementary cable presence in Germany
- Complementary fixed line positions in the rest of Europe
- Both use Tivo (Spain and UK)

[johnathome]

Someone posted a link earlier that VF may try to buy LG. Lots of rumours floating around recently.

[qasdfdsaq]

Vodafone's definitely going to be left behind in the market if all the other rumoured acquisitions go ahead and they don't do anything...

[bubblegun]

Originally Posted by 1andrew1

"Vodafone Group Plc (VOD) is exploring a combination with John Malone’s Liberty Global Plc (LBTYA) that would create Europe’s largest phone, Internet and TV company, worth more than $130 billion, people with knowledge of the matter said."
https://www.bloomberg.com/news/2014-...ty-global.html

A combination between LG and Vodafone has logic:
- Complementary cable presence in Germany
- Complementary fixed line positions in the rest of Europe
- Both use Tivo (Spain and UK)

There are competition issues in Germany, not really complimentary.
They'd need to sell things they just bought recently, according to press reports.

Originally Posted by bubblegun

There are competition issues in Germany, not really complimentary.
They'd need to sell things they just bought recently, according to press reports.

That's my understanding too, would be a good move though, they could get even more investment for expansion.

[Pierre]

As said many time in multiple threads.

This has been kicked around by the speculators ever since Vodafone Offloaded their stake in Verizon.

If they had moved for Liberty then they could have bought the whole thing for cash.

But they didn't, they've given a load of cash back to shareholders, and committed funding to invest in their network, which is sorely needed.

That means any deal now would have with shares. Which may or may not be attractive to shareholders. Also as Liberty has grown it has accumulated a fair amount of debt, which again may put off shareholders.

Then there is potential competition issues in each country, they may have to sell of bits of Liberty that they've just bought.

I hope this deal doesn't go through as I don't think it would be good for anyone. There is a lot speculation though, especially over the last 24hrs. When you read in to the piece though the opening paragraph sort of lays it out.

No formal negotiations with Liberty are under way, there’s no guarantee a deal will be reached, and valuation and regulatory issues remain key obstacles, the people said.

The story seems to be based on the premise that Vodafone have had a meeting to discuss whether or not they should bid for Liberty. So still a long way off if at all.

[Virgin N00b]

Would Vodafone want/need to buy Virgin's network, when they already own C&W's (ex Bulldog/Pipex) LLU infrastructure?

They can surely reach far more customers over LLU than over Virgin's?

[Pierre]

Originally Posted by Virgin N00b

Would Vodafone want/need to buy Virgin's network, when they already own C&W's (ex Bulldog/Pipex) LLU infrastructure?

They can surely reach far more customers over LLU than over Virgin's?

The only reason to buy Liberty would be so they could offer quad play. But they already have plans to offer a TV package and fixed line broadband over ADSL. But that is in the UK only.

There is potential growth in quad play if you get the offering right. Only about 17% of Virgin customers take all 4 products.

At the moment Virgin are investing in the network, expanding it. I would expect that to stop if Vodafone took over.

Originally Posted by Pierre

The only reason to buy Liberty would be so they could offer quad play. But they already have plans to offer a TV package and fixed line broadband over ADSL. But that is in the UK only.

There is potential growth in quad play if you get the offering right. Only about 17% of Virgin customers take all 4 products.

At the moment Virgin are investing in the network, expanding it. I would expect that to stop if Vodafone took over.

[SIZE=1]---------- Post added at 11:09 ---------- Previous post was at 11:08 ----------[/SIZE
[SIZE=1]---------- Post added at 11:11 ---------- Previous post was at 11:09 ----------[/SIZE

They would be buying a customer base as well though and that would give them a head start rather than starting from scratch. They are struggling attracting new business in the UK and I think Virgin connected more new mobile customers than Voda in Q3

The challenge they have is that Liberty don't need to sell, however everything has a price.

Not sure why you would expect Network Expansion to stop if they took over, it's clear that to really take on the other big players, they need to be able to make their services available to more homes, whoevers name is over the door?

[jb66]

I think it would be BAU if Vodafone bought liberty global. Whatever virgin is doing it seems to be working so no need to change. Would be nice if virgin mobile dumped EE and went with a supplier who allowed 4g

[1andrew1]

Originally Posted by bubblegun

There are competition issues in Germany, not really complimentary.
They'd need to sell things they just bought recently, according to press reports.

Malone seems convinced that as Liberty Global's and Vodafone's cable networks are in different German states, there would not be competition issues in this respect. So a bit like the coming together of Telewest and NTL in the UK. But obviously Vodafone has other businesses in German as well as its Kabel Deutschland business.

[Virgin N00b]

Originally Posted by jb66

Would be nice if virgin mobile dumped EE and went with a supplier who allowed 4g

I'm sure EE would "allow" Virgin to use 4G, the question is why Virgin don't currently offer it?

My money would be on cost, perhaps EE won't offer VM rates that they would be prepared to pay?

[jb66]

Originally Posted by Virgin N00b

I'm sure EE would "allow" Virgin to use 4G, the question is why Virgin don't currently offer it?

My money would be on cost, perhaps EE won't offer VM rates that they would be prepared to pay?

No virtual operator on EE used 4g, tesco and gift gaff use 02

[Kushan]

Doesn't surprise me, EE's big selling point is their 4G. It certainly isn't their customer service, allowances or prices.

[qasdfdsaq]

Originally Posted by Kushan

Doesn't surprise me, EE's big selling point is their 4G. It certainly isn't their customer service, allowances or prices.

Indeed, EE has by far the best 4G coverage in the UK and can afford to charge a premium for it, given their considerable lead, VM simply didn't want to pay up.

Nothing about not 'allowing' 4G, Virgin Mobile Business has been giving customers 4G over EE's network for some time. It's simply a pricing issue, business services are more profitable, their consumer services are targeted at the low-end/economy market.

(P.S. EE's 4G allowances are in fact the largest by far of the major networks, and pricing is competitive in some aspects, considering £800 of usage in the US on O2 would be free on EE.)