Telefonica tipped to buy out Liberty Global’s share of Virgin Media O2

Telefónica may make a bid for Liberty Global’s stake in Virgin Media O2 (VMO2), according to reports by Bloomberg and Reuters.

VMO2 was formed in 2021 through a £31 billion merger between Virgin Media and O2 UK. The 50:50 joint venture currently serves more than 45 million broadband and mobile customers across the country.

Reports claim Telefónica is now considering buying out Liberty Global’s stake in the business, with discussions said to be at a preliminary stage.

This follows the expiration of a lock-up clause that previously restricted changes to the ownership structure. No formal proposals have been made public, but Telefónica has reportedly held talks with advisers to evaluate its options.

Strategic Review

The company is currently undergoing a strategic review under new Chairman Marc Murtra, appointed earlier this year to re-evaluate Telefónica’s direction amid financial pressures and market turbulence. The review is expected to conclude in the second half of 2025. The Spanish government, which holds a 10% stake in Telefónica, is said to be monitoring developments closely.

Consolidating ownership of VMO2 could strengthen Telefónica’s position in the UK market, particularly as Vodafone and Three pursue a proposed £15 billion merger that would create the country’s largest mobile network operator.

Telefónica’s Chief Operating Officer Emilio Gayo has downplayed any immediate plans to alter the joint venture’s structure. “We’re very happy with the current situation. The joint venture is working very well; we don’t have any proposals on the table to change that situation at the moment,” Gayo said.

Liberty Global has declined to comment on the reports.