While we were strong supporters of Liberty Global's exit from Japan and Australia as well as its purchases of UnityMedia and KBW in Germany, we are much less enthused with its recent acquisition of Virgin Media in the U.K. Virgin Media is growing at Read more
Liberty Global provides diversified exposure to international cable assets. Many of the systems it owns enjoy penetration rates that are among the best in the world. Other less penetrated markets offer growth potential.
Over the past few years, the firm has sold assets in Sweden, France, Norway, Brazil, Peru, Slovenia, Japan, and Australia; increased its stake in Belgium; and acquired Swiss, Irish, Romanian, Polish, British, and German operations. Management's deep experience, coupled with its desire to wheel and deal, should add value for shareholders.
Starting in 2006, Liberty Global has regularly bought back its stock. In total, it has acquired $8.2 billion worth of its stock. It has another buyback approved for $3.5 billion through 2015.
The firm continues to roll out higher speeds for Internet access, with offerings of up to 120 Mb/second. Read more
Liberty has $38 billion in net debt, leaving little room for error. Its UGC division and predecessors to Virgin Media previously went bankrupt under the weight of their debt burden.
This is John Malone's company, and his interests may not be aligned with minority shareholders'.
Although some of the firm's networks are state-of-the-art, many still need significant upgrading to offer the latest digital cable and Internet access services, which will keep capital expenditures high for the foreseeable future.
Several of Liberty's assets are located in emerging markets and subject to volatile economics, currencies, and politics. Read more
Chairman John Malone is a legend in the cable television industry. He became CEO of TCI in 1973 and more recently was CEO of Liberty Media. Liberty Global was spun out of Liberty Media in 2004 and merged with United Globalcom in 2005, shortly after Read more
Liberty Global owns cable networks and a couple of small satellite operations in the U.K., the Netherlands, Switzerland, Austria, Belgium, Germany, Ireland, Hungary, Romania, Read more
Dividend Yields Attractive for Underperforming Stocks Watch more