Deutsche Telekom buys Austrian cable unit from Liberty Global for $2.25 billion
For Liberty Global, the sale is seen as part of efforts to reorganise its operations in the event that merger negotiations with Vodafone resume.
With the acquisition, Deutsche Telekom is hoping to challenge the dominance of local incumbent Telekom Austria , which has around 1.5 million fixed-line broadband subscribers, compared to roughly 500,000 for UPC Austria.
The deal comes days after Deutsche Telekom expanded its fixed-line footprint in the Netherlands and signed a letter of intent for Poland. It also comes in the wake of its failure to merge its T-Mobile U.S. operations with Sprint in autumn.
Deutsche Telekom, which generates two thirds of its sales outside Germany, will be left with mobile only operations in its largest single market, the U.S., as well as in small countries such and Albania, if the recently struck deals come to fruition. ■