(Reuters) - John Malone's Liberty Global Inc <LBTYA.O> struck a deal to buy British cable group Virgin Media <VMED.O> <VMED.L> for about $15.75 billion, a move that would put the U.S. billionaire up against old rival Rupert Murdoch.

Libert and Virgin said in a statement on Tuesday that under the terms of the deal, Virgin Media shareholders will receive $17.50 in cash, 0.2582 Liberty Global class A shares and 0.1928 Liberty Global class C shares for each Virgin Media share. Using Tuesday's closing prices for those shares, that implies a value of $47.02 for each Virgin Media share.

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

(Reporting By Michael Erman; Editing by Gary Hill)