Liberty Global Acquires 50% Stake in Vodafone's Dutch JV
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 18 hours ago
0mins
Should l Buy LBTYA?
Liberty Global (LBTYA) announced that it has entered into a definitive agreement with Vodafone Group Plc (VOD) to acquire Vodafone's 50% shareholding in their Dutch telecommunications joint venture, VodafoneZiggo. Under the terms of the agreement, Vodafone will receive EUR 1B in cash and a 10% stake in a new Benelux company to be named Ziggo Group which will hold Liberty Global's interests in VodafoneZiggo and Telenet in Belgium. Both VodafoneZiggo and Telenet will continue to operate under their current brands and credit silos, with their experienced management teams focused on delivering their respective strategic growth plans. The transaction will enable Liberty Global to fully unlock the value of its Benelux operating businesses for shareholders, supported by plans to list Ziggo Group locally in 2027 on Euronext in Amsterdam and to spin-off the 90% held by Liberty Global to its shareholders. In addition, Liberty Global and Vodafone Group have entered into long-term service agreements relating to VodafoneZiggo, ensuring continued operational alignment and stability throughout the transition. Mike Fries, Chairman and CEO of Liberty Global, said: "This transaction marks a significant milestone in our decades-long commitment to the Benelux region and is fully aligned with our strategy of unlocking long-term value for shareholders. By combining these assets, we are creating a regional powerhouse comprised of two converged national FMC champions operating in rational markets - an attractive platform with strong prospects for sustained free-cash-flow generation. We are excited about giving shareholders the opportunity to participate directly in Ziggo Group's future growth and value creation." " The planned spin creates an opportunity to broaden and deepen the investor base by establishing two distinct, simplified and compelling investment profiles - one for Ziggo Group and one for Liberty Global, as we did with the spin-off of Sunrise in late 2024," the company said.
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Analyst Views on LBTYA
Wall Street analysts forecast LBTYA stock price to rise
6 Analyst Rating
0 Buy
5 Hold
1 Sell
Hold
Current: 11.160
Low
11.00
Averages
12.75
High
13.90
Current: 11.160
Low
11.00
Averages
12.75
High
13.90
About LBTYA
Liberty Global Ltd. is an international provider of broadband Internet, video, fixed-line telephony and mobile communications services to residential customers and businesses in Europe and are an active investor in the infrastructure, content and technology industries. It also provides technology solutions and finance services. The Company's segments include Liberty Telecom, Liberty Growth and Liberty Services. Liberty Telecom includes converged broadband, video and mobile communications businesses. Liberty Growth invests, grows and rotates capital into scalable businesses across the technology, media/content, sports and infrastructure industries with a portfolio of approximately 70 companies and various funds, including stakes in companies like ITV, Televisa Univision, Plume, EdgeConneX and AtlasEdge, as well as its controlling interest in the Formula E racing series. Liberty Services offers technology and finance service platforms offered by its centralized functions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Revenue Forecast: The revenue estimate for Q4 is $1.21 billion, and if actual revenues fall short of expectations, it could pressure the stock price, while exceeding estimates might boost market sentiment.
- Strategic Partnership: Google is set to deploy AI for Liberty Global and utilize its data centers, which could enhance the company's technological capabilities and operational efficiency, potentially leading to improved performance in the competitive landscape.
See More
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- New Investment Position: Baupost Group established a new stake in Amazon during Q4, making it the fund's second-largest holding at 9.3% of assets, reflecting confidence in the e-commerce and cloud giant despite differing views from Buffett.
- Portfolio Adjustments: The fund completely exited its position in PagSeguro Digital in Q4, indicating a strategic portfolio adjustment likely based on market performance and future expectations.
- Top Holdings: As of December 31, Restaurant Brands International remains Baupost's largest holding, indicating sustained confidence in the restaurant sector, and it was also the top holding in Q3, showcasing stability.
- Market Performance Comparison: Amazon was the worst-performing stock among the Magnificent Seven in 2025, and Baupost's investment decision may be based on optimism regarding its cloud segment growth, which will test the effectiveness of Klarman's strategy against Buffett's reduction in exposure.
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- Financial Performance Overview: Liberty Telecom's four national FMC champions generated a total of $22 billion in revenue and $8 billion in EBITDA, demonstrating strong operational momentum despite market challenges, reflecting the company's discipline in capital allocation.
- Future Outlook: Virgin Media O2 is expected to see a 3% to 5% decline in total service revenues for 2026, while VodafoneZiggo faces challenges with low single-digit revenue declines, highlighting ongoing competitive pressures and rising operational costs.
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See More
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- Broadband Subscriber Losses: The company reported a net loss of 16,700 broadband subscribers, which represents a sequential improvement despite ongoing intense competition, suggesting some effectiveness in customer retention strategies.
- Postpaid Subscriber Losses: Postpaid net losses totaled 164,800, primarily driven by elevated churn during the 30-day exit window following the October price increase announcement, highlighting the impact of pricing adjustments on customer loyalty.
- ARPU Decline: Fixed ARPU declined by 0.8% year-over-year due to pricing pressures, particularly during the Black Friday period, indicating potential threats to revenue from intensified market competition.
See More
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- Substantial Group Acquisition: Liberty Global, along with InfraVia and Telefónica, is acquiring UK-based alternative fiber provider Substantial Group, committing £1 billion in new funding, which is expected to unlock £3.5 billion of investment in the UK market.
- Fiber Footprint Expansion: This acquisition is anticipated to expand the fiber footprint of Liberty Global and its partners to 20 million premises in the UK, significantly enhancing market share and driving future growth potential.
See More
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