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Virgin Media, O2 Combine to Create New Telecom Giant

  • One of the largest deals since Covid-19 declared a pandemic
  • Venture will be big enough to challenge BT’s dominance
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Virgin Media, O2 Deal Creates Largest U.K. Phone, Internet Provider
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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.