Sky "drops bid for Tiscali"

 

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Posted on 22 Dec 2008 at 09:45

BSkyB has reportedly pulled out of takeover talks with Tiscali after the two companies failed to agree a price.

Tiscali has been trying to sell its UK business since the summer, with Carphone Warehouse and BSkyB both exploring takeover bids for the ISP.

However, talks between BSkyB and Tiscali have foundered after the Murdoch-owned broadcaster failed to meet Tiscali's valuation.

Tiscali is hoping to get around £600m for its UK business, while BSkyB started bidding at around £450m, according to a report in The Guardian.

The newspaper claims BSkyB is worried about Tiscali's falling subscriber numbers and the difficulties of integrating Tiscali's various brands, which include Pipex and the once pioneering HomeChoice, which was broadcasting television over broadband long before the likes of BT Vision.

The collapse of the BSkyB bid will mean further uncertainty for Tiscali's 1.7m customers - something which rival ISPs have already exploited.

Tiscali instigated legal proceedings against BT earlier this year, after BT sent out a mailshot to Tiscali customers warning them of the impending sale and offering them "an alternative broadband service".

Author: Barry Collins