Virgin Media O2 - comment

Liberty wants to split network assets from customers to boost multiples; Telefonica doesn’t. We expect Telefonica to want to take 100% control of VMO2, but we do not expect this to happen before 2026.

We expect EBITDA of £4 billion and net debt of £21 billion for FY 2025, applying an 8.5x multiple => equity of £12bn, or another £6bn for Telefonica. Liberty will want to inflate that multiple as much as possible.