Liberty Global acquires 6.4 % of ITV

Liberty Global acquires 6.4 % of ITV

Liberty Global acquires 6.4 % of ITV

Largest international cable company Liberty Global agreed to buy the 6.4 % stake from British Sky Broadcasting Group for 481 million pounds ( $824 million). BSkyB is owned by 21st Century Fox with 39.1 % stake inthis company. This deal comes after Ruper Murdoch $80 billion bid for Time Warner Inc.- this takeover will be rejected.by Time Warner.

“It is hard to read this move as anything other than an indication of its longer-term intentions,” Ian Whittaker, an analyst at Liberum Capital in London. ” At the very least, it sends a signal to other potentially interested parties that they would face a possible fight for the asset.”

“This is an opportunistic and attractive investment for us in our largest cable market. ITV is the leading commercial broadcaster in the U.K. and we’re excited to be shareholders.” said Mike Fries, CEO fo Liberty Global

Liberty Global and Discovery Communications agreed this year to buy the British television producer All3Media for £550 million, while BSkyB is in early talks to combine its British pay-TV assets with the Italian and German broadcasting units of 21st Century Fox.

“The deal between Liberty Global and BSkyB is yet another key sign that the pay-TV provider is raising funds to expand into Europe,” said Paolo Pescatore, director of apps and media at the research analysis company CCS Insight, in reference to BSkyB. “This is a good move for Liberty Global, whose recent deal with All3Media sends strong signals from the cable company that to compete it cannot rely on just connectivity alone.” added

Under U.K. takeover rules, Liberty Global must now wait six months if it intends to make a full bid for ITV. Those rules can be waived if there’s a major change in ITV’s business or if the board consents to merger talks.

 

Mr. Stakebay says:

I see in this move expanding on European markets with BSkyB in Great Britain, Sky Deutschland and Sky Italia. This move could mean speeding to build Sky Europe project.

 

CEO of ITV……………………………………..Adam Crozier ……………………….. (2010-present) ………………………….£8 400 000 (2013)

CEO of Liberty Global ……………………… Michael T. Fries ………………………(2005-present)…………………………$17 680 000 (2013)

 

Liberty Global

ITV  

Revenue

$ 14.472 billion (2013)

£ 2.389 billion (2013)

Operating income

$ 2.012 billion (2013)

£ 546 million (2013)

Profit

$ -114.6 million (2013)

£ 330 million (2013)

Total assets

$ 67.714 billion (2013)

£ 3.923 billion (2013)

Total Equity

$ 11.541 billion (2013)

£ 889 million (2013)

Employees

35000(2013)

4257(2013)

 

 

 

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