Liberty Global is working on plans to split off or sell parts of the group. The US telecom company confirms that VodafoneZiggo, in which it has a 50 percent stake, may be part of this strategy.
Liberty Global CEO Mike Fries announced during the presentation of the quarterly figures that the company is strategically reorienting itself. The motivation for this is a significant difference between the market value and the combined value of the individual parts. “We are working hard on plans to separate the remaining business units from Liberty Global,” Fries said during the presentation.
The approach follows the successful example of the spin-off of the Swiss company Sunrise. The company has not yet decided whether this will be done through a sale, IPO, or other deals. Any sale or IPO of VodafoneZiggo requires the approval of both owners. Liberty Global and Vodafone Group each own 50 percent of the shares.
New organizational structure at VodafoneZiggo
Since July 1, VodafoneZiggo has been operating under a revised organizational structure that focuses on greater agility and more effective collaboration. “By simplifying our organization and opting for specialized teams for each brand, we can respond more quickly to customer needs,” said CFO Ritchy Drost.
Each brand – Ziggo, Vodafone, and hollandsnieuwe – now manages the entire process from product design to delivery. Vodafone has been given a strong focus on technological innovations to better connect with modern, digital customers.
VodafoneZiggo faces challenges
The circumstances for VodafoneZiggo are currently challenging. In the second quarter, revenue fell by 2.4 percent to 990 million euros. The number of broadband customers has been declining for several quarters in a row, although customer losses appear to be leveling off.
The company is trying to turn the tide with a new strategy. This includes faster networks, higher discounts, and a partnership with Delta Fiber to reach 600,000 additional households.
Major restructuring at Liberty Global
The restructuring at Liberty Global is accompanied by drastic measures. According to the Financial Times, a significant portion of the workforce will be laid off. The company is even considering selling one of its private jets. Liberty Global previously sold its 5 percent stake in Vodafone Group.
Liberty operates in several countries, with interests in Virgin Media O2 (United Kingdom) and Telenet, among others. It is unknown whether talks are already underway about the future of VodafoneZiggo, but it is clear that Liberty is preparing for major strategic decisions.
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