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Rumour: Are Vodafone planning a collaboration with Virgin Media?

Vodafone have today (5th June) announced that they are in talks with Liberty Global about a potential exchange of assets between the two companies - namely Virgin Media.

Virgin Media was aquired by Libery Global for £15 billion back in 2013 and as a quad-play business rivals BT and Sky within the UK.

With the recent aquisitions of EE by BT and O2 by Three Mobile UK we can't say that we're suprised to hear that Vodafone and Virgin Media might be working together in the future - another coal to the fire was the announcement that Sky is going to become a MVNO through O2 by 2016.

The rumour mill has been running strong since the end of last year with both Libert global and Vodafone CEOs dropping references to a potential collaboration.

Vodafone LogoVirgin Media Logo

Last month Liberty Global chairman John Malone stated that he felt that a working relationship with vodafone would be a "great fit" for his company, resulting in Vodafone shares increasing by 3.5 per cent.

This prompted Vodafone Chief Executive Vitorio Colao to add his two cents, saying that at the "right price" they could be interested in a deal with Liberty Global.

However a Vodafone announcement recently released stated that, "Vodafone confirms that it is in the early stages of discussions with Liberty Global regarding a possible exchange of selected assets between the two companies."

The release also went on to add, "There is no certainty that any transaction will be agreed, nor is there certainty with respect to which assets will ultimately be involved", and "Vodafone is not in discussions with Liberty Global concerning a combination of the two companies."

While nothing concrete has been announced by either company it does appear that they are entertaining the idea of a collaboration and we can perhaps be expecting an announcement in the not too distant future.