Liberty Global plc – Class A Ordinary Shares (LBTYA) 6.4% Stake Buy In ITV Plc Indicates Future Takeover Plans

Liberty Global plc – Class A Ordinary Shares (NASDAQ:LBTYA) new 6.4% stake in ITV Plc gave way to speculations that the company might completely acquire ITV. With the new buzz in, CNBC took views from Liberum Capital media analyst, Ian Whittaker, over the latest development and the broader consolidation in the media industry.

Liberty Global Inc

Whittaker believes that the stake buy by Liberty Global plc – Class A Ordinary Shares (NASDAQ:LBTYA) could point out to an eventual acquisition at some point of time, but he does not see it happening anytime soon. More than that, he believes that the stake buyout is a way to send out signal to potential parties, which wish to buy ITV that they have a strong contender with the new Liberty Global plc – Class A Ordinary Shares (NASDAQ:LBTYA)’s stake.

The stake buy adds to its another buyout in the U.K., Virgin Media Inc. (NASDAQ:VMED), which was acquired earlier last year. Thus, the deal points out that the European region is an important area for Liberty Global plc – Class A Ordinary Shares (NASDAQ:LBTYA).

“You look at the deals they have done over the past eighteen months to two years. They have bought cable assets in several European countries. In the U.K. they have Virgin Media, which is essentially the only cable operator in this market,” Whittaker said.

But according to him, one of the interesting difference is that Liberty Global plc – Class A Ordinary Shares (NASDAQ:LBTYA) previous deals were based on infrastructure, but its stake in ITV is more about content.

According to Whittaker “there is a wide degree of consolidation both on the infrastructure side and on the content side as well” in the media space. Also, Whittaker said that the U.S. media groups are now increasingly targeting U.K. media companies, citing two big deals from the past four months,  Channel 5 by Viacom, Inc. (NASDAQ:VIAB) and Discovery Communications Inc. (NASDAQ:DISCA) by Liberty Global plc – Class A Ordinary Shares (NASDAQ:LBTYA).


Disclosure: none

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!