Friday, 1 March 2013

Sky UK to acquire Telefonica's Landline And Broadband Business For up to £200M


Sky already supplies fixed phone line and broadband on top of its TV services in the UK, but it's just announced it'll be gaining a few more customers. The company has shaken hands with Telefonica UK to purchase the latter's broadband and phone line business provided by the consumer-facing O2 and BE brands. As you would imagine, big bucks will change hands: Sky plans to fork over £180 million (around $273 million) right off the bat, and will write a cheque for up to a further £20 million (circa $30 million) "dependent upon the successful delivery and completion of the customer migration process by Telefonica UK." Regulators will need to give the deal the thumbs up before it's official, but if and when that happens, Sky will become the second biggest ISP in the UK after adding over 500,000 new customers to its books. Should everything progress as planned, the buyout will be completed by the end of April, which gives Rupert Murdoch just enough time to carry out the vault extension he'll need.
Update: If you're worried this transaction will impact anything you're currently signed up to, you can probably rest easy. O2 has tweeted one of our editors to report "there will be no material change to a customer's broadband service and no fundamental contract change." [Engadget]

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