European Commission plugs in Liberty Virgin Media buyout

Competition authorities today approved the £15bn takeover of Virgin Media by Liberty Global without any conditions at all.

by Michael Northcott

Liberty Global is the largest cable operator in Europe, and it’s about to get even larger. The European Commission has announced that it does not have any concerns about monopolies over the industry, approving a £15bn bid to take over Virgin Media without any conditions whatsoever. It is a major coup for John Malone, the chairman of Liberty Global, who has been trying for some years to get a decent foothold in the UK cable market.

In a statement, the EC said: ‘The merged entity is unlikely to shut out competing Pay TV retailers by withholding its TV channels from them, given its very limited presence in the wholesale supply of TV channels and the incentive to license its TV channels as broadly as possible.’ It went on to say that there is a number of alternative platforms to which customers could turn, such as Sky.

Virgin Media’s staff who have shares in the company will enjoy a huge windfall of cash – the biggest of which will be for chief executive Neil Berkett, who gets $65m worth of shares for resigning once the takeover is complete. Richard Branson will (predictable) be another winner from the deal, as his 3% stake in the company will net him $300m. Not everyone will get as much as that, but around 2,700 employees signed up for a share scheme in the company in 2009 (including everyone from board level to call centre workers) and will get an average of £15,984 for the deal.

Sign in to continue

Sign in

Trouble signing in?

Reset password: Click here

Email: mtsupport@haymarket.com

Call: 020 8267 8121

Register

FREE

  • Up to 4 free articles a month
  • Free email bulletins

Register Now

Become a subscriber

From £66 a quarter

  • Full access to managementtoday.co.uk
  • Exclusive event discounts
  • Management Today's print magazine
  • Plus lots more, including our State of the Industry Report.

Choose a Package