Europe: UPC parent company Ziggo may take over

Liberty Global, the American parent company of UPC, Ziggo take over. That the European Commission has decided. There were worries about competition, but Liberty Global has commitments to which road to take.

By the fiat of the European Commission, it is likely that the two largest kabelaars of the Netherlands go hand in hand. This would megakabelaar arise, that in 90 percent of the Netherlands has coverage. The shareholders of the listed Ziggo should the takeover still approve; they have until the beginning of november the time for their shares to deliver. If at least 80 percent of the shares is surrendered, the acquisition by. This would make the acquisition before the end of the year to be completed.

Liberty Global was already known that UPC and Ziggo after the acquisition to a single provider with the name Ziggo will be merged. It is not yet known how quickly that will happen; Liberty Global could that Friday afternoon, not yet.

Despite the fact that UPC and Ziggo do not directly compete with each other – each area has basically one kabelaar – lived worry for the competition. As broadcasters would like the public broadcaster, and RTL, which by the kabelaars be paid for transfers, after the acquisition, a much more powerful partner opposite them at the negotiating table.

To get approval for the acquisition, Liberty Global has promised for its pay-tv channels Film1 to sell. The European Commission feared that Liberty Global has a large position in the market would get: Ziggo is, after all, behind the Dutch branch of Film1-competitor HBO. Together, the stations are a great power against the makers of films and series.

In addition, Liberty Global has have to promise that it will be enough network capacity to competing services like Netflix available will keep. Also will Liberty Global over the next eight years no more demanding set of broadcasters who are transmitting it through its tv package on setting up their own streaming services. At this time, the public service broadcaster, for example, agreements about the doorgiftekwaliteit of Missed the Broadcast on the internet, according to a source opposite Tweakers. The quality is lower, to the kabelaars keeping them happy. Incidentally, denies Liberty Global that to happen.

The acquisition of Ziggo in January announced. Liberty Global had last year, 28.5 percent of Ziggo in hands. In October last year was already a takeover bid has been made, but that was by Ziggo chopped off, because the provider’s bid is not high enough. Then negotiated the two kabelaars about a new takeover bid.

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