EU to investigate Liberty Global's purchase of Ziggio

The European Union will probe Liberty Global's (LBTYA) purchase of Ziggio to evaluate the impact on consumers.

Despite the deal giving the media giant access to 90% of the cable households in the Netherlands, analysts rate it a fair chance that the EU will approve the deal on the broader view that Ziggio competes with telecoms in the regions.

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Comments (2)
  • peterhorrid
    , contributor
    Comments (4) | Send Message
    This is a straightforward process. Merging in the Netherlands give a Liberty Global and Ziggo a 63% market share in Pay TV, making it over dominant in content acquisition for the country. It also gives it a 50% share in broadband, making it automatically dominant. There is no historical precedent of one company being created by a merger that has this type of dominance in Either Europe or the US. So this deal cannot go through because of the dominance this gives a single broadband supplier and its effect on consumer pricing. If you take Germany as a lead, there have been 4 knockbacks on cable mergers that I can remember, and the Netherlands regulator is far more consumer oriented than Germany.
    As for your comments that analysts all think it will go through, that's true if you take the majority of analysts who are financial, rather than technology analysts. What I find alarming is the tiny number who have expressed ANY doubts about this deal going through, including the M&A papers, who should know better.
    This deal is toxic and will be unraveled. The biggest problem is the extent to which Ziggo and LGI are already cooperating in WiFi and with plans to do the same in mobile, and if this deal gets squashed, then it is likely that those efforts too get squashed.
    17 Mar 2014, 08:47 AM Reply Like
  • sangcorporation
    , contributor
    Comments (36) | Send Message
    try buying LBTYA stock for you and anyone youŕe concerned about and you will be fine.
    17 Mar 2014, 08:58 AM Reply Like
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