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LBTYA - Liberty Global


Liberty

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I thought the write-up was pretty good but have some issues with some of the math. Agreed EBITDA growth seems a bit low, but that's been covered. My issue is more on the FCF yield. It doesn't look like the author is deducting the LILAK stake from LBTYK's market cap - this means PF FCF yield for LBTYK is higher than the write-up...

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  • 2 weeks later...

Would anyone with access care to DM me a copy of the MS report?  Thanks in advance.

 

[pretentious] executive summary: things are uncertain *shiver* and it already went down a lot so our PT was too high. End.

 

This is exciting. First time ever I'm considering buying it. Hope it keeps crashing.

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Two questions here.

1. What's your estimated maintanence capex for Liberty Global?

2. Does this Vodafone deal sound similar to the TCI-AT&T merger in 1999? A phone company pays out fat dividends and focuses on EPS while a cable company tries to minimize tax and focuses on long term cash flow. The marriage of TCI-AT&T did not end up well. How will Malone solve that problem here? Vodafone's market cap is 3 times more than Liberty Global. Will this end up to be Vodafone's CEO driving the show? That would not end up well.

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Two questions here.

1. What's your estimated maintanence capex for Liberty Global?

2. Does this Vodafone deal sound similar to the TCI-AT&T merger in 1999? A phone company pays out fat dividends and focuses on EPS while a cable company tries to minimize tax and focuses on long term cash flow. The marriage of TCI-AT&T did not end up well. How will Malone solve that problem here? Vodafone's market cap is 3 times more than Liberty Global. Will this end up to be Vodafone's CEO driving the show? That would not end up well.

 

1. I don't have an answer for that. In 2014 they spent ~2.7bn on capex and all I know is that it'll be a fraction of that. Think about their business and where they have to spend the money. Most of it is growth capex.

 

2. I think he will try to take control of the new entity – at least with veto power – exactly because of his AT&T experience. He won't make the same mistake twice. I think VOD/LBTYA is a match made in heaven because it makes all the strategic sense in the world (seamless provision of data access everywhere) and VOD is managed with far too much "tax leakage". A combined entity controlled by Malone and managed for cash flows instead of earnings would be a real beast.

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Yes, my prediction with ~74% confidence is that merger won't happen.

 

What I wonder about: Malone should realize this too. So why is he talking to VOD for so long? For fun (and - likely no - profit  ;) )?

 

Because they could still talk about some asset swaps that would be favorable.

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*BING*  ;)

 

Yes, my prediction with ~74% confidence is that merger won't happen.

 

What I wonder about: Malone should realize this too. So why is he talking to VOD for so long? For fun (and - likely no - profit  ;) )?

 

Because they could still talk about some asset swaps that would be favorable.

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*BING*  ;)

 

Yes, my prediction with ~74% confidence is that merger won't happen.

 

What I wonder about: Malone should realize this too. So why is he talking to VOD for so long? For fun (and - likely no - profit  ;) )?

 

Because they could still talk about some asset swaps that would be favorable.

 

Hopefully he finds something interesting to put in the LILA side pocket

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