Virgin Media and O2 might merge to create a UK telecom giant and to challenge Sky and BT

guest · May 2, 2020

Virgin and O2 might merge to create a UK telecom giant
It could have a ripple effect elsewhere in the world
May 2, 2020
https://www.engadget.com/virign-media-o2-merger-talks-000127189.html

Two of the bigger telecoms in the UK are reportedly close to uniting. The Guardian sources say the owners of Virgin Media and O2, Liberty Global and Telefonica, are in talks for a UK joint venture that would unite their mobile, internet and TV efforts. The exact motivations for the union wouldn’t be clear, but this would help the two fend off heavyweights BT and Sky.

A merger could lead to a more consolidated UK telecom space with fewer choices for services, but it could also have ripple effects worldwide. Telefonica has been scaling itself back to focus on four markets — uniting O2 with Virgin could jumpstart that strategy. Liberty Global, meanwhile, could use this to expand its foothold in Europe and bring its set-top platform (Horizon TV) to more people.
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Daveski17 · May 3, 2020

Eventually there's going to only be one big company for everything.

The Red Moon · May 4, 2020

In other words O2 is bailing virign out.Richard branson has billions and has his cap in hand asking for government bailout (taxpayer.).

guest · May 7, 2020

Virgin Media and O2 announce £31 billion UK merger
The deal is pending approval, but puts BT, Sky and Vodafone on notice
May 6, 2020
https://www.engadget.com/virgin-media-o2-liberty-global-telefonica-merger-081409576.html

The rumors were true: UK broadband provider Virgin Media and telecoms operator O2 are to merge, their parent companies confirmed today. In a statement, Liberty Global and Telefonica said that the deal — which values the 50-50 venture at just over £31 billion ($39 billion) — will create “the leading fixed-mobile provider in the country,” dealing a significant blow to BT, Sky and Vodafone in the process.

The announcement comes just four days after rumors first appeared, but UK consolidation talks have been ongoing for years. In 2015, Vodafone was interested in a "possible exchange of selected assets" with Virgin Media in an attempt to bulk up ahead of BT's merger with EE.
O2, which is the UK’s biggest carrier with 34 million subscribers, also agreed a merger with Three UK in the same year [...]
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The Virgin Media-O2 deal will be subject to the same checks, but in an attempt to assuage regulators, the two companies vowed to “put customers first” and invest £10 billion in UK infrastructure over the next five years.
Given that competition watchdogs waved through BT’s tie-up with EE with no remedies, it’s unlikely that Liberty Global and Telefonica will see too much pushback on their merger.
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UK: Virgin Media and O2 agree merger to tackle BT
May 7, 2020
https://www.neowin.net/news/uk-virgin-media-and-o2-agree-merger-to-tackle-bt

Virgin Media and O2 have announced that they’re merging, bringing together the UK’s fastest broadband network, and the country’s largest mobile platform. The resulting entity will be better positioned to take on BT which runs EE, which itself was the result of a merger between T-Mobile and Orange ten years ago.

Currently, O2 is valued at £12.7 billion and Virgin Media is valued at £18.7 billion. Under the deal, O2 will be transferred into a joint venture on a debt-free basis, while Virgin Media is to be contributed with £11.3 billion of net debt and debt-like items.
The firms expect the transaction to close around the middle of next year. It will be subject to regulatory approvals, the consummation of the recapitalizations, and other customary closing conditions.
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O2: Liberty Global and Telefonica to merge their U.K. Operations creating the leading fixed-mobile provider in the country

guest · Oct 8, 2020

U.K. Antitrust Body Requests Right to Investigate Proposed Merger of Virgin Media, Virgin Mobile and O2
October 8, 2020
https://variety.com/2020/biz/global...virgin-media-virgin-mobile-and-o2-1234797253/

U.K. antitrust organization the Competition and Markets Authority has submitted a request to the European Commission for the proposed merger in the U.K. of broadband and mobile-phone operators Virgin Media and Virgin Mobile with cell-phone company O2 to be referred to the CMA for investigation.

The CMA believes that the case should be transferred given its potential impact on competition in several retail and wholesale telecommunication markets in the U.K.
Andrea Coscelli, chief executive at the CMA, said: “We’ve sent a formal request to the European Commission to review the proposed deal between Virgin and O2.

“Ultimately, this is a decision for the EC, but as the merger will only impact U.K. consumers – and any effects would only be felt after the end of the transition period (after which the U.K. leaves the EU) – it is only right for the CMA to request it back.”
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The initial deadline for the EC to respond to the request is Nov. 19.
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Virgin Media and O2 might merge to create a UK telecom giant and to challenge Sky and BT

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