3GScottishUser
4th December 2005, 09:08 AM
From The Sunday Times (04/12/2005):
SIR Richard Branson is to combine Virgin’s mobile phone business with NTL, the cable television company, in a bid to create a new powerhouse in the television and telecoms industries.
This weekend, Branson’s advisers were in advanced talks with Simon Duffy, chief executive of NTL, to merge their businesses in a deal likely to be valued at £7 billion or more.
The new company will adopt the Virgin brand, and will be the biggest business to use a name that is synonymous with Branson, the billionaire who is one of Britain’s most successful businessmen.
The intention is to create a combined media and telecoms business that could offer customers four services — television, fixed-line telephony, mobile phone and broadband internet connections.
It is hoped this “quad-play” offering will give the new company an advantage over leading rivals such as Sky Television, BT and Orange, owned by France Telecom. Sky is 38% owned by News Corporation, the ultimate owner of The Sunday Times.
It was not clear last night whether NTL intends to make a cash offer for Virgin Mobile, which is separately quoted on the London stock market.
However, Branson intends to take shares in NTL as payment for the 72% stake that Virgin Group holds in Virgin Mobile. This would give Branson an estimated 15% stake in the combined NTL/Virgin Mobile business, worth close to £1 billion.
Branson and Virgin Group may receive a further substantial payment as NTL would have to reward Branson for using his brand for television, broadband and fixed-line telephony services.
Virgin Mobile, which has 5m customers, has a value of nearly £800m, having increased in value by more than 50% since its flotation last year.
NTL is in the process of a £6 billion merger with Telewest, Britain’s other cable television company. NTL, Virgin and Virgin Mobile are expected to make an announcement to the London stock exchange tomorrow.
http://www.timesonline.co.uk/newspaper/0,,176-1903898,00.html
SIR Richard Branson is to combine Virgin’s mobile phone business with NTL, the cable television company, in a bid to create a new powerhouse in the television and telecoms industries.
This weekend, Branson’s advisers were in advanced talks with Simon Duffy, chief executive of NTL, to merge their businesses in a deal likely to be valued at £7 billion or more.
The new company will adopt the Virgin brand, and will be the biggest business to use a name that is synonymous with Branson, the billionaire who is one of Britain’s most successful businessmen.
The intention is to create a combined media and telecoms business that could offer customers four services — television, fixed-line telephony, mobile phone and broadband internet connections.
It is hoped this “quad-play” offering will give the new company an advantage over leading rivals such as Sky Television, BT and Orange, owned by France Telecom. Sky is 38% owned by News Corporation, the ultimate owner of The Sunday Times.
It was not clear last night whether NTL intends to make a cash offer for Virgin Mobile, which is separately quoted on the London stock market.
However, Branson intends to take shares in NTL as payment for the 72% stake that Virgin Group holds in Virgin Mobile. This would give Branson an estimated 15% stake in the combined NTL/Virgin Mobile business, worth close to £1 billion.
Branson and Virgin Group may receive a further substantial payment as NTL would have to reward Branson for using his brand for television, broadband and fixed-line telephony services.
Virgin Mobile, which has 5m customers, has a value of nearly £800m, having increased in value by more than 50% since its flotation last year.
NTL is in the process of a £6 billion merger with Telewest, Britain’s other cable television company. NTL, Virgin and Virgin Mobile are expected to make an announcement to the London stock exchange tomorrow.
http://www.timesonline.co.uk/newspaper/0,,176-1903898,00.html