Through The Fly's Eyes: Virgin Media

from Eric Buscemi of Theflyonthewall.com











What Price Virgin Media?

Virgin Media (VMED) received a private equity bid this weekend. The question is, for how much? The company wouldn’t specify the suitor or the amount, as disclosure would apparently void the bid, but the speculation ran the gamut:

* 8 billion, according to the U.K. Times
* $10 billion or more, according to CNN/Money
* $15 billion, according to the Guardian
* $20 billion, according to the New York Times

As of Friday’s close, Virgin Media had a market cap of $7.9B. For arument’s sake, let’s eliminate the $8B bid. Beyond that, who knows? The $20B bid looks a bit high, but private equity firms have been throwing so much money around lately, it’s impossible to tell. All of the papers quoted are well-respected sources, so we'll have to take a wait and see -- for more data -- approach.

Virgin Media's shares jumped over 18% today on the news. That gives the company a current market cap of $9.5B, leaving considerable room for upside should a higher bid be the correct answer.