Author Topic: LBTYA - Liberty Global  (Read 128953 times)

Liberty

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LBTYA - Liberty Global
« on: March 15, 2014, 08:04:36 PM »
This one has been discussed in other places (mostly the LMCA thread), but I think it deserves its own home. I've been looking into it a bit, but it's not a company I understand too well.

I know that many people here own it, and I'd really appreciate it if they shared their thesis on it (I suppose the most common one is probably: Malone is recreating TCI outside the US in cable markets that aren't as mature and a lot more fragmented).

There's a recent overview of Liberty Global here:

http://oraclefromomaha.wordpress.com/2014/03/09/liberty-global-deep-dive-into-media-companies-series-part-1/
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jay21

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Re: LBTYA - Liberty Global
« Reply #1 on: March 16, 2014, 11:50:49 AM »
Thanks.  This one is interesting (as are most Malone companies).

As well he should.  LBTYA was built off the carcass of UCOMA UnitedGlobalcom and Fries was the UCOMA COO when Liberty Media International took it over.  UCOMA was a crappily run, family owned business (Gene Schneider then CEO) that got way overleveraged.  Who's the white knight, well John Malone of course.  For those who have been around the block with Malone does this sound familiar (SiriusXM hint hint).

UCOMA valuation (0.2155 shares of Liberty per UCOMA share) was awful in the acquisition and a lot of UCOMA shareholders bailed afterward (me included).  IT was a big mistake.  Freed of the Schneider's meddling and the debt burden, Mike Fries did a great job building out LBTYA.

Thanks for the background, roger.  Do you  have any thoughts on Global atm? I was very interested in this one for the following reasons:

- appeared to be employing a roll up strategy of European assets
- Malone saying even recently that one should diversify away from US and the bargains are in Europe
- does not appear to be over valued based on TEV/EBITDA
- increased buy back

However, I ended up throwing in the too hard pile (for now at least):

- multiple countries = different regulatory environments, demographics, competitors etc.
- my own ignorance of the industry and technology

I have just started to do some real work on Global but the low broadband penetration seems to me to be very enticing.  For example, as of the beginning of 13, the broadband penetration in Germany was 18%.  Based on the 2012 numbers, I could see them adding something on the order of 6mm broadband subs in Europe over time.  With the Virgin Media and Ziggo deals, that number is probably ultimately going to be higher.  Given the margin characteristics of broadband, it seems like that increase in subs would represent a significant driver for FCF growth over time.

Recent BBG article: http://www.bloomberg.com/news/2014-03-12/liberty-global-to-roll-out-pan-european-mobile-platform.html

"Liberty Global will put together a so-called mobile virtual network operator system, or MVNO, the name given to companies that use other carriers’ wireless infrastructure for their own mobile services, Senior Vice President Manuel Kohnstamm said in a interview yesterday in Amsterdam.

“We’re working on a deep MVNO, and we don’t only do that in Austria but in the whole of Europe,” Kohnstamm said. “We’re constructing a pan-European MVNO platform.”

Liberty Global will be able to keep margins high because, as a European cable TV operator, the company runs one billing system, one back-office and one back-haul, which connects the core network to the smaller subnetworks, he said. The company is introducing the MVNO network in the Netherlands, Belgium, Switzerland, Austria and the U.K., Kohnstamm said."
@jay_21_

sethatk

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Re: LBTYA - Liberty Global
« Reply #2 on: March 20, 2014, 09:31:12 AM »
So Buffett, or one of the T's bought in at an average of $81 and now it is around $42. This gets my attention!

racemize

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Re: LBTYA - Liberty Global
« Reply #3 on: March 20, 2014, 09:33:11 AM »
So Buffett, or one of the T's bought in at an average of $81 and now it is around $42. This gets my attention!

There was a split or something of that nature (perhaps a C share dividend).

sethatk

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Re: LBTYA - Liberty Global
« Reply #4 on: March 20, 2014, 09:35:05 AM »
Sorry, just noticed the split on 4 March.

LowIQinvestor

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Re: LBTYA - Liberty Global
« Reply #5 on: April 07, 2014, 11:29:32 AM »
Any real reason (news) for why the stock is down 6% today?

I am new to Liberty but is it speculation about the Ziggo deal not getting approved? Anyone have thoughts?

Getting interested in buying....

Liberty

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Re: LBTYA - Liberty Global
« Reply #6 on: April 07, 2014, 11:42:19 AM »
Any real reason (news) for why the stock is down 6% today?

I am new to Liberty but is it speculation about the Ziggo deal not getting approved? Anyone have thoughts?

Getting interested in buying....

I think it's just the general market. I'm seeing tons of things that are down 3-6% today.
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saltybit

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Re: LBTYA - Liberty Global
« Reply #7 on: May 10, 2014, 07:51:26 PM »

ItsAValueTrap

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Re: LBTYA - Liberty Global
« Reply #8 on: June 28, 2014, 08:36:58 AM »
Does anybody know what this is?

[John Malone] entered into a long-dated post-paid variable forward sale contract with an unaffiliated counterparty relating to a maximum of 1,100,000 shares of Liberty Global Inc.'s Series C common stock, divided into 20 equal components that mature on sequential trading days over the period beginning on August 17, 2017 and ending on September 14, 2017

http://www.sec.gov/Archives/edgar/data/937797/000112760213019833/xslF345X03/form4.xml
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ni-co

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Re: LBTYA - Liberty Global
« Reply #9 on: July 09, 2014, 03:22:24 AM »
Does anybody know what this is?

[John Malone] entered into a long-dated post-paid variable forward sale contract with an unaffiliated counterparty relating to a maximum of 1,100,000 shares of Liberty Global Inc.'s Series C common stock, divided into 20 equal components that mature on sequential trading days over the period beginning on August 17, 2017 and ending on September 14, 2017

http://www.sec.gov/Archives/edgar/data/937797/000112760213019833/xslF345X03/form4.xml

This sounds like a definite sale in 2017 with a variable purchase price component that might reflect the stock price development (or track other measurements) until then.