Liberty Global to Acquire Virgin Media for $23 Billion

Shaun Curry | Bloomberg | Getty Images

John Malone's Liberty Global struck a deal to buy British cable group Virgin Media for about $23 billion, a move that would put the U.S. billionaire up against old rival Rupert Murdoch.

(Read More: What Time Warner and News Corp Can Tell Us About Cable)

Liberty and Virgin said in a statement on Tuesday that under the terms of the deal, Virgin Media shareholders will receive around $47.87 in cash and stock per Virgin Media share, a 24 percent premium to Friday's closing price.

That would value the cash and stock part of the deal (excluding debt) at $16 billion.

The deal includes $17.50 in cash, 0.2582 Liberty Global class A shares and 0.1928 Liberty Global class C shares for each Virgin Media share.

Virgin Media is the second-biggest pay-TV provider in Britain behind Murdoch's satellite group BSkyB.

(Read More: Murdoch's Tablet-Only 'The Daily' Shutting Down)