Liberty Global Inc. (LBTYA)’s Acquisition of Virgin Media Inc. (VMED): Gold Still in the Mines?

Additionally, Rupert Murdoch’s News Corp remains the company to beat.  Murdoch is reportedly pursuing the acquisition of 7 companies, which he expects to spend about $1.3 billion on. This would give News Corp additional muscle and presence to thwart any challenge from rivals.

Virgin Media’s most recent adjusted earnings missed analyst estimates sending the shares down, despite the announcement of the impending acquisition by Liberty just a day before. Nonetheless, analysts are optimistic that the company will post impressive results for the March quarter.

Bottom Line

John Malone has proven to be a shrew investor as far as long-term potential is concerned. A good example is the case of Sirius XM, whereby his company Liberty Media now owns just less than 50 percent, but is soon expected to increase stake well beyond the half way mark. The satellite radio services company rally in 2013 seems unstoppable, with the exit of Karmazin as CEO. Virgin Media would give Liberty a wider accessible market in a continent where Liberty has been lacking a presence. The combined package also has a subscriber base estimated at 24 million across the globe.

The article Liberty’s Acquisition of Virgin Media: Gold Still in the Mines? originally appeared on Fool.com and is written by Nicholas Kitonyi.

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