Liberty Global and Telef\u00f3nica have agreed to merge their U.K. operations, Virgin Media and O2, into a 50-50 joint venture.<\/p>\n
The transaction is expected to close in 2021. The combined firm will have more than 46 million video, broadband and mobile subscribers, generating revenues of \u00a311 billion. The board overseeing the JV will consist of four executives from Liberty Global and four from Telef\u00f3nica.<\/p>\n
\u201cCombining O2\u2019s number one mobile business with Virgin Media\u2019s superfast broadband network and entertainment services will be a game-changer in the U.K., at a time when demand for connectivity has never been greater or more critical,” said\u00a0Jos\u00e9 Mar\u00eda \u00c1lvarez-Pallete, CEO of Telef\u00f3nica. “We are creating a strong competitor with significant scale and financial strength to invest in U.K. digital infrastructure and give millions of consumer, business and public sector customers more choice and value. This is a proud and exciting moment for our organizations, as we create a leading integrated communications provider in the U.K.\u201d<\/p>\n
Mike Fries, CEO of Liberty Global, noted, \u201cVirgin Media has redefined broadband and entertainment in the U.K. with lightning fast speeds and the most innovative video platform. And O2 is widely recognized as the most reliable and admired mobile operator in the U.K., always putting the customer first. With Virgin Media and O2 together, the future of convergence is here today. We\u2019ve seen the benefit of FMC first-hand in Belgium and the Netherlands. When the power of 5G meets 1 gig broadband, U.K. consumers and businesses will never look back. We\u2019re committed to this market and are right behind the government\u2019s digital and connectivity goals.\u201d<\/p>\n
O2 is valued at \u00a312.7 billion and Virgin Media at \u00a318.7 billion.\u00a0Both parties expect to receive net cash proceeds at closing following a series of recapitalizations that will generate \u00a35.7 billion in proceeds for Telef\u00f3nica and \u00a31.4 billion for Liberty Global (after an equalization payment to Telef\u00f3nica of \u00a32.5 billion).<\/p>\n","protected":false},"excerpt":{"rendered":"
Liberty Global and Telef\u00f3nica have agreed to merge their U.K. operations, Virgin Media and O2, into a 50-50 joint venture.<\/p>\n","protected":false},"author":290,"featured_media":10240,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[69],"tags":[207,2430,389,637],"class_list":["post-10239","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-top-stories","tag-liberty-global","tag-o2","tag-telefonica","tag-virgin-media"],"yoast_head":"\n