Why Liberty Global (LBTYA) Stock Is Up Today

NEW YORK (TheStreet) -- Shares of Liberty Global (LBTYA) are up 1.25% to $42.08 after it was reported that Chairman John Malone’s cable group has been among Europe’s hungriest companies, agreeing to $40 billion in acquisitions since last February, according to data from Dealogic.

Now there's speculation it might extend its drive into video content, the Financial Times reports. Having bought a minority stake in ITV last month, it could seek control of the U.K. broadcaster.

Together with sister company Discovery Communications (DISCA), Liberty is also in talks to acquire a 49% stake in Formula One from CVC Capital Partners and Lehman Brothers Holdings.

 

Liberty had net debt of $41.4 billion at the end of June, equivalent to 4.8 times annualised free cash flow. But although bids for ITV and Formula One are by no means certain, a lack of financial firepower does not seem an obstacle, the Times said.

TheStreet Ratings team rates LIBERTY GLOBAL PLC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate LIBERTY GLOBAL PLC (LBTYA) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity."

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