Blog Post

Major consolidation in Dutch cable industry as Liberty reveals $9.4B Ziggo buyout

Stay on Top of Enterprise Technology Trends

Get updates impacting your industry from our GigaOm Research Community
Join the Community!

Confirming recent reports, John Malone’s Liberty Global(s lbtya) broadband outfit – the world’s largest outside China — said on Monday that it will buy what it doesn’t already own of Dutch cable provider Ziggo.

Ziggo’s other shareholders (Liberty already owns around 28.5 percent) will get €11 ($15) per share, along with some Liberty shares. This implies a price per Ziggo share of €34.53, taking the provider’s total valuation to €6.9 billion ($9.4 billion). Ziggo’s supervisory and management boards have unanimously recommended the deal.

Ziggo is the biggest cable company in the Netherlands and Liberty’s UPC is the second-biggest, though the two are not direct competitors due to a split in regional coverage. The combined operations, which will continue under the Ziggo brand, will reach 7 million Dutch homes, or 90 percent of the market.

The deal will also give Liberty a mobile play in the country, which it previously lacked – the current wave of European telco consolidations is largely about creating providers that can offer a full package of communication technologies.

However, Ziggo CEO Rene Obermann – who left the helm of the much larger Deutsche Telekom less than a month ago — is out the door. “If and when the transaction closes, it is not Mr. Obermann’s intention to be part of the new combination,” a Ziggo statement read.