Liberty Global Goes Dutch

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Dec. 12 (Bloomberg) -- On today's "Global Outlook," Bloomberg’s Jon Erlichman reports on Liberty Global in talks to buy Dutch broadband company Ziggo. He speaks with Adam Johnson on Bloomberg Television's "Street Smart." (Source: Bloomberg)

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We are talking about going dump and not splitting the bill but shopping there.

John ehrlichman joins us.

Liberty media might be going dump, jon.

We are friends, we can split the bill whenever.

You talk about cable consolidation consolidation.

John malone is at the center of it whether in the united states or abroad.

There is this interest liberty global has in making a full scale purchase of a dutch cable operator operator.

As we continue a european buying binge over the last decade.

The reasons are not dissimilar to what we have seen in the u.s. in the sense if you own more of these assets you can cut some costs, some of those research and development costs and just the realities of building up these big infrastructure businesses.

One of the key differences between the european market and the american market is that since you are dealing with a lot of different languages depending on what country your assets are in, it is more about the cost synergy and here it is saving money and also about trying to control these sky high content costs that the cable companies continue to complain about and keep getting into fights over.

And malone has been the instigate instigator for more consolidation and cable companies are competing with the likes of facebook and it makes it a global story.

Cable has the challenge of being local when facebook is everywhere available to more than a billion people rolling out more video and competing with a cable subscriber.

We haven't really seen cable companies go cross-border.

They tend to be regional.

Is this the way of the future we see global distribution companies?

I think that the challenge will be the language barrier.

Each market has distinct content.

But here in the united states if you think about what likely will happen you expect that could happen in more global markets, just the idea of comcast having such a large size and a lot of other players being smaller relatively speaking, and because they are smaller and have fewer subscribers the content companies like disney charge them more.

So you have to pay more for the content content.

Jon ehrlichman.

Up next is it a new era for facebook facebook?

It is entering the s&p 500 next

This text has been automatically generated. It may not be 100% accurate.

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