Liberty Global Plans Netherlands Joint Venture With Vodafone
February 15 2016 - 10:40PM
Dow Jones News
U.S.-based cable operator Liberty Global PLC said Monday it is
setting up a joint venture combining its operations in the
Netherlands with Vodafone Group PLC.
Vodafone will pay Liberty Global, the Europe-focused operator
controlled by cable tycoon John Malone, 1 billion euros ($1.12
billion) as part of the deal, according to a statement. Liberty
said after integration costs, the 50-50 joint venture would be
worth about 3.5 billion euros in terms of combined revenue and
capital expenditures.
The tie-up would merge Liberty Global's cable and Internet
businesses with Vodafone's mobile operations to create a
Netherlands-wide communications provider with more than 15 million
subscribers, Liberty Global said.
The tie-up is expected to close around the end of 2016 and will
be subject to regulatory approvals, Liberty Global said in a
statement.
Liberty Global, with headquarters in both Englewood, Colo., and
London, also reported Monday its financial results for the three
months and year ended Dec. 31. The firm's operating income for 2015
rose 5% from a year earlier to $2.3 billion.
European cable and telecom operators have embarked on a wave of
consolidation in recent years, keen on benefiting from so-called
"quadruple-plays": providing fixed telephony, mobile, Internet
broadband and pay-television, with the goal of winning consumer
loyalty and increasing subscriber revenue.
Write to Newley Purnell at newley.purnell @wsj.com
(END) Dow Jones Newswires
February 15, 2016 22:25 ET (03:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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