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Liberty Global (LBTYA) to Acquire UTV Ireland from ITV

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Liberty Global Plc. (LBTYA - Free Report) , a leading cable MSO (multi service operator) in Europe and Latin America has entered into an agreement with ITV plc. to acquire UTV Ireland TV stations from the latter through its subsidiary Virgin Media. The deal is valued at €10 million and is subject to regulatory approval from the Competition and Consumer Protection Commission and the Broadcasting Authority of Ireland as well as a separate media plurality test by the Irish Government.

UTV Ireland is a free-to-air entertainment channel currently available on Virgin Media, eir Vision, Vodafone Group Plc. (VOD - Free Report) , Sky and Saorview networks. Per the deal, Virgin Media will assume the existing 10-year program supply agreement between UTV Ireland and ITV Global Entertainment.

In Jun 2013, Liberty Global had acquired a 100% stake in the British cable MSO, Virgin Media. In the U.K., the merged entity poses serious competitive threat to British Sky Broadcasting Group plc, which is partially controlled by News Corp. (NWSA - Free Report) . In recent years, Liberty Global has been extensively investing in the Irish market. Last year, UPC Ireland, a subsidiary of Liberty Global, acquired free-to-air Irish TV broadcaster TV3 from a private equity firm Doughty Hanson. It also purchased the Irish Wi-Fi provider Bitbuzz.

Notably, in Jul 2014, Liberty Global acquired a 6.4% stake in ITV plc. from British Sky Broadcasting Group plc. In 2015, the company further increased its stake in ITV to 9.9%. ITV is the largest commercial TV broadcaster in the U.K. with a program line-up which includes top-rated programs like “Downton Abbey” and “Got Talent”. In the U.K., ITV’s closest competitor is Channel 5, a subsidiary of Viacom Inc. .

Liberty Global is also pursuing a systematic geographical diversification strategy and is steadily strengthening its foothold in the European pay-TV market. In Feb 2016, British telecom giant Vodafone and Liberty Global decided to merge their Dutch operations to form a 50-50 JV. The deal is currently under strict regulatory review of the European Commission.

Liberty Global currently carries a Zacks Rank #4 (Sell).

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