Liberty Global Buys Virgin Media

Liberty Global is spending $23.3 billion to buy Virgin Media, the U.K. cable operator, a move that makes Liberty Global a much bigger player in the European cable TV and Internet access markets. 

Liberty Global would serve about 25 million customers, assuming the transaction is approved by regulators.

Liberty Global also owns cable assets in Germany, Belgium, and other countries across the continent.

Among other implications, the deal might suggest that low interest rates and somewhat depressed equity valuations could drive a wave of acquisition activity in the communications and entertainment video space, while such conditions exist. 

Though some of us would not say the deal necessarily changes competitive dynamics in the U.K. market, we might be more inclined to say that the expected wave of acquisitions could have such impact, eventually. 

Low interest rates, limited organic growth opportunities and attractive equity valuations are going to spur more thinking about "growth by acquisition" strategies. The downside, some might also say, is an increase in leverage for the acquiring firms. 

That, in turn, might have unpleasant consequences for some acquirers, several years down the road. depending on the direction and magnitude of interest rate movements.