When it comes to reporting on the possible acquisition of UPC Romania by RCS&RDS, it seems increasingly difficult to separate fact from fiction.
Broadband TV News began to monitor reports in the local press on a possible deal between the two parties earlier this year and has been surprised by two contradictory ones that have appeared in the last few days. The first quoted Bogdan Chiritoiu, the head of Romania’ Competition Council, as saying that talks had taken place with both UPC Romania and RCS&RDS, though only on a consultative basis and examining the implications of any possible deal on the marketplace.
The second said that UPC Romania had sent a statement to the local press – Broadband TV News has not seen a copy – denying that the company is to be sold to RCS&RDS.
It has been pointed out to us by a colleague in Romania that we are reporting on rumours rather than fact in the case of this possible deal and their point is taken. However, in the absence of any hard and fast information from either party it is probably an easy trap to fall in to.
Perhaps we should stand back and consider some facts. Liberty Global is arguably in a much better position now than it has been for several years, buoyed by its expansion into Germany and general success in a number of West European markets. However, it has still to close the Aster deal in Poland seven months after its announcement.
In Romania, the company has had difficulties with its UPC cable operation for quite some time, principally due to the specific nature of the marketplace. However, Focus Sat, the satellite side of the business, has and continues to perform reasonably well in a sector dominated by two larger players.
Liberty Global has previously taken the decision to exit such markets as France, Sweden and Norway and could in due course also leave Romania. On the other hand, it may decide to stay. Ultimately, it will be a business decision made on the basis of what is best for the company.
