BRUSSELS--Europe's biggest cable operator Liberty Global Inc
(LBTYA) received the green light Monday for its 17.2 billion euros
($22.5 billion) acquisition of Virgin Media Inc., the U.K.'s second
largest pay-TV operator, after European Union said the acquisition
raised no competition concerns.
Market analysts say the Virgin Media deal will likely reinforce
Liberty Global's challenge against BSkyB, Britain's top pay-TV
provider, owned by Rupert Murdoch. News Corp. (NWS), which owns The
Wall Street Journal, is BSkyB's largest shareholder, with a 39.1%
stake.
The European Commission, which acts as the EU's antitrust
watchdog, said the companies operate cable networks in different EU
countries, and that the merged entity would have only a limited
market position in the wholesale of TV channels in the UK and
Ireland.
In its review, the commission said it had looked into the TV
content acquisition sector in the UK, Ireland and the European
Economic Area (EEA) as a whole. It also investigated the vertical
link between Liberty Global's activities in the wholesale supply of
pay-TV channels, it said.
"It is unlikely that the merged entity would shut out competing
TV channel broadcasters from access to the retail Pay TV market,
given the number of alternative distribution platforms to Virgin
Media's cable network (e.g. BSkyB's satellite platform) and the
importance of offering a large variety of TV channels in order to
attract Pay TV subscribers," the commission said in its
statement.
Liberty Global provides TV, broadband internet and telephony
services in ten EU countries but not in the U.K. Its brands include
Telenet Group Holding NV (TLGHY), Unitymedia and UPC. Liberty
Global also produces and supplies a number of TV channels to TV
operators in the UK through its content division Chellomedia.
Virgin Media owns and operates a cable network in the U.K.,
offering pay-TV, broadband internet and telephony services.
Write to Vanessa Mock at vanessa.mock@dowjones.com
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