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Telefonica Shares Rise 4% on News of O2, Virgin Media Merger Talks – Variety

Shares in Spanish telco large Telefonica had been buying and selling 4% greater at 4.35 Euros ($4.76) Monday after it confirmed that it’s in talks with John Malone’s cable firm Liberty International in regards to the merger of its U.Ok. mobile-phone operator O2 with Liberty International’s Virgin Media, a number one supplier of pay-TV, broadband, fixed-line and cell-phone companies to British prospects.

The merged firm can be value $30 billion, in response to Goldman Sachs, and management a market-leading 34% of the U.Ok. telecoms market, by income. This is able to threaten the place of present market chief BT, which has a 32% slice of the market. It will additionally ship synergies as the businesses would have the ability to make financial savings by combining back-office operations and infrastructure, which Deutsche Financial institution mentioned might complete £6 billion ($7.45 billion).

In an announcement, Telefonica mentioned: “The method initiated by each events is in a negotiation part, not having the ability to assure, to this date, neither the exact phrases nor the likelihood of its success.”

Virgin Media had 6 million TV and broadband, and three.three million cellular subscribers at first of this yr, with income totaling $6.6 billion final yr.

Telefonica UK, which incorporates the O2 cellular enterprise, had 34.5 million prospects on the finish of 2019, with income of 7.1 billion Euros ($7.eight billion) final yr.

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