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Computer peripherals industry

Microsoft Invests in European Cable TV Industry with United Pan-European Communications

Strategic Insights

— 1 min read

Microsoft, the world's largest software group, has made its second move into the European cable television industry this week by agreeing to buy a $300 million equity stake in United Pan-European Communications (UPC). This investment aims to accelerate the deployment of high-speed voice, data, and video services across Europe. UPC, Europe's largest private cable TV provider, plans to almost double the size of its initial public offering following Microsoft's backing.

Key Takeaways:

  • Microsoft will invest $300 million in UPC, Europe's largest private cable TV provider, as part of its strategy to accelerate the deployment of high-speed voice, data, and video services.
  • UPC plans to almost double the size of its initial public offering, valued at $1.11 billion to $1.25 billion, with Microsoft taking a $300 million stake.
  • The investment will fund UPC's network upgrade, the construction of internet and data networks, and new video distribution and programming businesses.
  • Microsoft will become UPC's preferred supplier and play a key role in its plans to provide integrated video, voice, and data services.
  • UPC, a unit of United International Holdings of the US, will list 32.5% of its equity on the Amsterdam and Nasdaq exchanges, with 40 million shares to be sold in a two-week bookbuilding period ending February 10.
  • The price range for the listing is indicated at 24 to 27, and the proceeds will fund UPC's expansion plans.

Statistics:

  • Microsoft will invest $300 million in UPC.
  • The initial public offering is expected to raise $1.11 billion to $1.25 billion.
  • UPC plans to almost double the size of its initial public offering following Microsoft's backing.
  • The price range for the listing is indicated at 24 to 27.
  • 40 million shares will be sold during the two-week bookbuilding period ending February 10.

Sources:

  • "Microsoft Invests in European Cable TV Industry with United Pan-European Communications" ( exact quote and format from the original text)
  • UPC press release (exact quote and format from the original text)

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