BSkyB buys Telefónica’s UK broadband arm
British Sky Broadcasting is to acquire Telefónica UK’s broadband business for £180 million less than a month after rival Virgin Media was bought in a $23 billion deal.
BSkyB, which is about 40 percent owned by Rupert Murdoch’s News Corp, said the purchase would make it the second-largest provider in the UK broadband market, building on its existing position as the UK’s fastest-growing broadband and telephony business. The purchase follows the acquisition of Virgin Media by John Malone’s Liberty Global last month in a cash and shares deal, marking the first entry into the UK cable market by the US group. As well as the £180 million price tag, another £20m may be payable depending on the successful delivery and completion of the customer migration process by Telefónica UK. The deal also includes 02’s fixed-line telephone business.