International cable giant Liberty Global Inc. said Tuesday it has agreed to acquire Virgin Media Inc. in a deal valued at $23.3 billion, including debt, that would expand its presence in the United Kingdom and create a rival to British Sky Broadcasting (BSkyB) in Europe’s pay-television market.
Englewood, Colorado–based Liberty, which is headed by billionaire cable pioneer John Malone, will pay roughly $15.75 million in stock and cash for Virgin Media, with the balance of the purchase price in the form of assumed debt. Under the terms of the agreement, Virgin Media shareholders are to receive a total of $47.87 in cash and stock for each of the company’s shares—a 24 percent premium over Virgin Media’s Monday closing price.
