John Malone's Liberty Global to Acquire Virgin Media in $23.3 Billion Deal

12:03 AM PST 02/06/2013 by George Szalai

The second-largest U.K. pay TV firm competes with the likes of BSkyB, in which Rupert Murdoch's News Corp. owns 39 percent.

John Malone's Liberty Global has made it official, agreeing to acquire U.K. cable giant Virgin Media in a cash and stock deal valued at approximately $23.3 billion.

Under the terms of the agreement, Virgin Media shareholders will get $17.50 in cash and Liberty Global Series A and Series C shares.

The price tag reflects a 24 percent premium to Virgin Media’s closing price on Monday when the deal chatter first emerged.

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Virgin competes with the likes of satellite TV giant BSkyB, in which Rupert Murdoch's News Corp. owns a 39 percent stake, setting up a U.K. showdown between the moguls.

Virgin's stock had hit a 52-week high Tuesday after the second-largest British pay TV firm confirmed deal talks.

Email: Georg.Szalai@thr.com
Twitter: @georgszalai

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