Jim Urquhart / REUTERS

Chairman of Liberty Media John Malone attends the Allen & Co Media Conference in Sun Valley, Idaho in this July 12, 2012 file photo. Malone's Liberty Global Inc struck a deal to buy British cable group Virgin Media, a move that would put the U.S. billionaire up against old rival Rupert Murdoch.

Liberty Globals$16 billion deal to buyBritish cable giant Virgin Media will create one of the largest broadband companies in the world, and sets up Liberty mogul John Malone, the famed U.S. cable financier, in a clash of the media titans against longtime rival Rupert Murdoch and his News Corp. conglomerate. The dealis yet another sign that the media and tech mergers and acquisitions market is revving up to levels not seen since the financial crisis. Earlier this week computer giant Dell announced plans to go private in a $24.4 billion deal.

Virgin Media is the second largest pay-TV company in the U.K. behind Europeansatellitegiant BSkyB, which is majority controlled by News Corp., so the merger instantly pits Malone against Murdoch in theEuropeanmedia market. The Financial Times was first to report news of the impending deal, which is worth a total of $23 billion including debt.Virgin Groups Richard Branson, the colorful billionaire impressario, stands to make about $316 million from the Liberty takeover, according to Bloomberg.

Liberty Global already has nearly 20 million customers, making it the second largest U.S. cable company after Comcast. By adding Virgin Medias 4.9 million subscribers, the combined entity would vault ahead of Comcast to become the largestbroadbandcompany in the U.S. and Europe.(BSkyB has 10.7 million customers.)

(MORE:What News Corp.s Breakup and the Demise of The Daily Mean for the Future of Murdochs Media Empire)

Malone has made no secret about Libertys plans to expand in Europe, where it is already a powerful player in over a dozen markets. For example, Liberty recently increased its stake in Belgian operator Telenet to 58%, although it failed in its attempt to take over the company outright. As part of the Virgin deal, Liberty plans to relocate its legal place of business to the U.K., though it intends to keep its Colorado headquarters as well as its presence on the Nasdaq stock exchange. Virgin Media will retain its brand name in the U.K.

Heres how Reuters describes Malone, a legendary figure in U.S. telecom and media markets:

Dubbed everything from the Cable Guy to Cable Cowboy and even Darth Vader by former U.S. Vice President Al Gore because of his perceived ruthless style, Malone made his fortune through a series of deals that transformed, and ultimately consolidated, the U.S. cable industry into one dominated by a few big players.

Liberty Global together with Virgin Media is a powerful combination, Liberty Global President and CEO Michael Fries said Wednesday on a conference call with investors, as cited by the Associated Press. In fact, it hits the mark on just about every strategic and operating criteria we have established for our company and provides significant benefits to Virgin Media subscribers and investors.In a statement, Freis said that80% of Liberty Globals revenue will come from just five attractive and strong countries the U.K., Germany, Belgium, Switzerland, and the Netherlands.

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Liberty's Virgin Deal Sets Up Media Clash Between Malone and Murdoch