UK cableco Virgin Media has confirmed that it is in discussions with giant multinational cable operator Liberty Global regarding a “possible transaction”, though declined to provide further details.
If Liberty Global were to acquire Virgin Media, it would provide the company with a substantial foothold in the UK market: the latter currently counts 4.8mn total cable customers, of which 3.78mn are TV subscribers, 4mn take broadband and around 4.16mn take fixed telephony services.
Virgin Media had a market value of just over US$ 10.4bn at yesterday’s closing prices, according to data compiled by Bloomberg, and saw its stock jump 14% as news of the talks with Liberty Global started circulating. The company is also traded on the Nasdaq Stock Market.
Liberty Global already has considerable presence in Europe, with 18.4mn subscribers there spread across 11 countries: Austria, Belgium, Czech Republic, Germany, Hungary, Ireland, Netherlands, Poland, Romania, Slovakia, and Switzerland.