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Virgin Media, O2 Combine to Create New Telecom Giant (4)

May 7, 2020, 2:46 PM

Telefonica SA and Liberty Global Plc have agreed to create the U.K.’s largest phone and internet operator, threatening their rivals and marking another industry-defining deal for billionaire John Malone.

The deal values the combination of Telefonica’s O2 with Liberty’s Virgin Media at 31.4 billion pounds ($39 billion). The companies said in a statement Thursday they plan a joint venture with equal stakes that will account for Virgin’s higher value -- and debt load -- with a payment to O2.

The transaction, first reported by Bloomberg, is a chance for both parent companies to rework two mid-tier rivals into a ...

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