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Virgin Media 'name change plan' | Virgin Media 'name change plan' |
(20 minutes later) | |
The US private equity suitor of cable TV firm Virgin Media may change the company's name if its £5.5bn bid is successful, a newspaper reports. | |
Carlyle may choose to distance itself from Sir Richard Branson and the Virgin empire to improve relations with BSkyB and Rupert Murdoch, the Observer said. | Carlyle may choose to distance itself from Sir Richard Branson and the Virgin empire to improve relations with BSkyB and Rupert Murdoch, the Observer said. |
BSkyB has withdrawn its channels, including Sky One, from the UK cable group in a row over fees for services. | BSkyB has withdrawn its channels, including Sky One, from the UK cable group in a row over fees for services. |
This followed BSkyB thwarting Virgin's efforts to take over ITV. | This followed BSkyB thwarting Virgin's efforts to take over ITV. |
It seems odd.... especially as Virgin strikes a chord with the British public Industry sourcequoted in The Observer | It seems odd.... especially as Virgin strikes a chord with the British public Industry sourcequoted in The Observer |
Largest investor | Largest investor |
Carlyle is considering whether it would be easier to restore a good relationship with Mr Murdoch if the connection with Sir Richard and the Virgin brand were severed, the paper said. | Carlyle is considering whether it would be easier to restore a good relationship with Mr Murdoch if the connection with Sir Richard and the Virgin brand were severed, the paper said. |
Quoting City sources, it suggested that the private equity firm would be able to swiftly settle the differences by making the move. | Quoting City sources, it suggested that the private equity firm would be able to swiftly settle the differences by making the move. |
However one industry observer told the paper that about £25m had been spent on promoting the Virgin Media brand, which came into existence last year after a takeover of NTL. | However one industry observer told the paper that about £25m had been spent on promoting the Virgin Media brand, which came into existence last year after a takeover of NTL. |
"It seems odd that Carlyle is prepared to write that money off and start again, especially as Virgin strikes a chord with the British public," they said. | "It seems odd that Carlyle is prepared to write that money off and start again, especially as Virgin strikes a chord with the British public," they said. |
Sir Richard is the largest investor in Virgin Media, which has 9 million customers and a £4bn annual turnover, from its cable TV, internet and mobile phone businesses. | Sir Richard is the largest investor in Virgin Media, which has 9 million customers and a £4bn annual turnover, from its cable TV, internet and mobile phone businesses. |
His 10% stake has grown by about £150m to be worth £577m since the takeover of NTL last Autumn. | His 10% stake has grown by about £150m to be worth £577m since the takeover of NTL last Autumn. |
He also owns the rights to the Virgin name. | He also owns the rights to the Virgin name. |
Losses stemmed | Losses stemmed |
If Carlyle's offer was accepted, the merger would value Virgin at approximately £5.6bn. | If Carlyle's offer was accepted, the merger would value Virgin at approximately £5.6bn. |
Virgin Media has been involved in a bitter dispute with Sky | Virgin Media has been involved in a bitter dispute with Sky |
The total value of the takeover deal, including Virgin's debt of almost £6bn, would be about £11.5bn. | The total value of the takeover deal, including Virgin's debt of almost £6bn, would be about £11.5bn. |
If it goes through, it would be the second biggest takeover of a British business by private equity, after Boots. | If it goes through, it would be the second biggest takeover of a British business by private equity, after Boots. |
It is believed Virgin's managers feel the business would be in a better position to grow as a private company, BBC business editor Robert Peston says. | It is believed Virgin's managers feel the business would be in a better position to grow as a private company, BBC business editor Robert Peston says. |
In its last results, Virgin said it had three million users of its television services, 3.4 million broadband customers, 4.5 million subscribers to its mobile phone service and 4.1 million fixed-line telephone customers. | In its last results, Virgin said it had three million users of its television services, 3.4 million broadband customers, 4.5 million subscribers to its mobile phone service and 4.1 million fixed-line telephone customers. |
It has stemmed its loss of customers in the battle with BSkyB, saying that its number of viewers was "roughly flat" during April and May, thanks largely to promotion campaigns. | It has stemmed its loss of customers in the battle with BSkyB, saying that its number of viewers was "roughly flat" during April and May, thanks largely to promotion campaigns. |
The company had earlier said it lost 46,900 customers in the three months to the end of March. | The company had earlier said it lost 46,900 customers in the three months to the end of March. |
This was prompted after Sky basic channels - also including Sky News and Sky Sports News - were withdrawn at the end of February. | This was prompted after Sky basic channels - also including Sky News and Sky Sports News - were withdrawn at the end of February. |
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