Highlights of Berkshire Hathaway's 1Q 2014 investments (Part 3 of 8)
Berkshire Hathaway and Liberty Global
Warren Buffett’s Berkshire Hathaway started a new position in Verizon Communications (VZ) and upped its holdings in Liberty Global Plc-Series C (LBTYK), Wal-Mart Stores Inc. (WMT), International Business Machines Corp. (IBM), and DaVita Healthcare Partners (DVA). The positions the fund trimmed included Phillips 66 (PSX) and General Motors Co. (GM).
Berkshire Hathaway added to its position in Liberty Global PLC (LBTYK) last quarter. The position now accounts for 0.57% of Berkshire’s 1Q 2014 portfolio, up from 0.25% last quarter.
Liberty Global PLC is an international provider of video, broadband Internet, fixed-line telephony, and mobile services with consolidated operations at December 31, 2013, serving 24.5 million customers across 14 countries. Through Virgin Media Inc. and Unitymedia KabelBW GmbH, each a wholly owned subsidiary, and Telenet Group Holding NV, a 57.4%-owned subsidiary, the company provides video, broadband Internet, fixed-line telephony and mobile services in the United Kingdom, Germany, and Belgium. Through UPC Holding BV, the company provides video, broadband Internet, and fixed-line telephony services in nine European countries and mobile services in three European countries.
Liberty Global drives cable consolidation in Europe
Billionaire John Malone’s international cable company, Liberty Global, has been on an acquisition spree. Liberty and Vodafone (VOD) have been driving consolidation in the cable industry in Europe amid rising demand for “quad play,” which are bundled packages of fixed-line phone, mobile, TV, and Internet services. Liberty agreed in January to acquire Dutch broadband provider Ziggo NV (ZIGGO) in a stock and cash transaction valuing Ziggo at approximately $13.7 billion, and it expects to merge Ziggo with its wholly owned Dutch cable operator, UPC, to compete against Dutch telecommunications company Royal KPN. With approximately 2.5 billion euros in total revenue, the combined company will be a leading provider of communication services across the Netherlands. Liberty recently announced a joint venture with Discovery Communications to acquire All3Media, the largest independent production group in the U.K. for $930 million. For the fiscal year ended in August 2013, All3Media recorded revenues of approximately 505 million pounds. A Bloomberg report noted Liberty has spent around $50 billion over consolidation in the European cable industry in the recent past.