Cable group Liberty Global ruled out a bid to acquire UK broadcaster ITV. Liberty is ITV's second-largest shareholder with a 6.45 percent stake. However, CFO Charlie Bracken told the Financial Times that ITV "looks awfully pricey". He added that the company does not plan to invest "billions of dollars in content — that’s not our game”.
A former Goldman Sachs banker, Bracken also said that Sky, Liberty’s pay-TV rival, "is in trouble" over the next 5-10 years, due to its reliance on satellite technology. Europe’s telecoms market will be dominated by "three or four players" within two decades, he predicted — Deutsche Telekom, Vodafone, Liberty Global and possibly France’s Altice. Bracken suggested that BT would be acquired, while Sky would focus on programming. Sky would face tough competition from Amazon and Netflix, who were ready "to bid hard with low margins".
Liberty is focused on two strategic questions, according to the CFO. First, "how important is convergence going to be", and second, "what are the economics of content"? Bracken said acquiring a UK mobile operator would not make sense for Liberty, as its Virgin Media cable network does not cover the whole country. It could be practical in the Netherlands and Belgium, where Liberty has a national footprint.
While the company does not plan a bid for ITV, it could help the broadcaster take its shows to new markets, Bracken said. Over the medium term, Liberty could help ITV make its shows available on demand in countries such as Germany.
