Telefónica-Led Venture to Buy UK Fiber Operator Netomnia in £2 Billion Deal

The latest announcement is out from Telefonica ( (TELFY) ).

Telefónica’s infrastructure arm, alongside Liberty Global and InfraVia through their nexfibre joint venture, has agreed to acquire 100% of U.K. fiber operator Netomnia for £2 billion, subject to customary adjustments and regulatory approvals. Netomnia’s network, combined with 2.1 million Virgin Media O2 homes to be upgraded, will be folded into nexfibre, which is expected to reach about 8 million fiber homes by the end of 2027, while the combined nexfibre and VMO2 footprint will total around 20 million homes.

As part of the deal, Virgin Media O2 will acquire Netomnia’s customer base and its YouFibre and Brsk brands, extend its wholesale agreement with nexfibre, receive cash for its wholesale commitment, and obtain a 30% stake in the holding company through which Telefónica Infra and Liberty Global invest in nexfibre. After closing, Telefónica Infra, Liberty Global and Virgin Media O2 will jointly own 50% of nexfibre, with InfraVia holding the remaining 50%, reinforcing Telefónica’s U.K. strategy to build a financially sustainable, larger-scale fiber network and enhance value creation through VMO2 and nexfibre.

The most recent analyst rating on (TELFY) stock is a Sell with a $3.40 price target. To see the full list of analyst forecasts on Telefonica stock, see the TELFY Stock Forecast page.

More about Telefonica

Telefónica, S.A. is a global telecommunications group headquartered in Spain, operating fixed and mobile networks, broadband and fiber infrastructure, and related digital services. Through subsidiaries such as Telefónica Infra and joint ventures like Virgin Media O2 in the U.K., it focuses on expanding high-speed connectivity and monetizing infrastructure via partnerships and wholesale models.

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Technical Sentiment Signal: Buy

Current Market Cap: $24.39B

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