Liberty Global Explores Network Deal: Report

Billionaire John Malone’s cable group Liberty Global PLC (NASDAQ:LBTYA) (NASDAQ:LBTYK) is amid discussions to carve out its network assets, Bloomberg reports.
Liberty is exploring splitting off its telecom infrastructure like cable and fiber, leaving its remaining businesses to focus on providing mobile, internet and TV services.
Executives at Spain’s Telefonica SA (NYSE:TEF), which co-owns Liberty’s biggest asset Virgin Media O2, are ready to apply that idea to their recently merged U.K. business.
A Bloomberg analyst estimated that Virgin Media O2’s fixed-line network could be worth 9.8 billion pounds ($13.5 billion).
Liberty also co-owns VodafoneZiggo, a joint venture in Holland, Telenet Group Holding NV (OTC:TLGHY) in Belgium and Sunrise UPC in Switzerland.
Liberty hired consultancy Accenture PLC (NYSE:ACN) to help with the work.
A restructuring could help Liberty Global tap investor demand for pure digital infrastructure and raise funds for upgrades or expansion.
Liberty Global CEO Mike Fries has said the group’s companies are undervalued and are also examining potential IPOs.
Meanwhile, it is co-investing in digital infrastructure with the launch of AtlasEdge, a data center joint venture co-owned by DigitalBridge Group Inc (NYSE:DBRG) and Liberty Networks Germany, a fiber joint venture with InfraVia Capital Partners.
Price Action: LBTYK shares traded higher by 0.74% at $29.87 Friday afternoon.