Following the receipt of regulatory approval, Liberty Global Inc. (LBTYA) and Discovery Inc. (DISCA) together sealed the acquisition of TV content producer All3Media for $1 billion.
In May 2014, Liberty Global formed a partnership with Discovery Communications to buy All3Media completely. Earlier, owned by its founders and Permira funds, All3Media comprised 19 production houses across Europe and the U.S.
All3Media will continue to operate as an independent global TV production company, receiving complete financial aid from owners which will help it fund global expansion goals. Both the media giants will also provide assistance to All3Media's diversified global customers.
According to recent reports, Liberty Global is on the verge of receiving the European Union (EU)’s regulatory approval to acquire full control of Ziggo N.V., the largest cable MSO in the Netherlands. At present, Liberty Global holds a 28.5% stake in Ziggo. Notably, the company will pay around $13.6 billion to acquire the remaining 71.5% stake in Ziggo, including its outstanding debt. The deal will be completed through a stock and cash transaction.
Last month, Liberty Global acquired around 6.4% of ITV plc, the largest commercial TV broadcaster in the U.K., from British Sky Broadcasting Group plc. for a total consideration of GBP481 million (around $824 million).
Meanwhile, Liberty Global added 239,000 organic revenue generating units (RGU) in the second quarter of 2014, up 25.1% year over year while subscriber stood at 24.47 million at the end of the reported quarter.
Hence, we believe that such strategic buyouts will not only drive RGU but will also boost the company’s subscriber growth while moving ahead.
Liberty Global currently carries a Zacks Rank #4 (Sell).
Stocks That Warrant a Look
Better-ranked stocks in the sector which are worth a look include CommScope Holding Company, Inc. (COMM) and Cablevision Systems Corporation (CVC). CommScope sports a Zacks Rank #1 (Strong Buy) while Cablevision carries a Zacks Rank #2 (Buy).
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