Ntl said the acquisition and proposed re-branding represented an important milestone in its history. The combined business would deliver "wide-ranging strategic and financial benefits to shareholders", said ntl in a statement. In particular, the deal would:
- help transform it from the UK's leading triple-play cable provider into "a national entertainment and communications company, harnessing the powerful Virgin consumer champion brand"
- enhance ntl as a "scale competitor" in the UK, enabling ntl to compete more effectively with BT and other telecommunications providers
- provide "a strong platform for innovation and development of converged products, such as converged fixed and mobile telephony devices, and video and voice services"
- appeal to existing and new consumers by offering "a wide range of high quality communications services from a single provider, with the unique flavour and customer focus of the Virgin brand".
Virgin Mobile will retain its existing brand, and its operating business will continue to be led by members of Virgin Mobile's current management team. A marketing director from Virgin will join ntl.
Ntl chairman James Mooney said: "Central to today's announcement is our strong belief that offering a quad-play underpins true media convergence, and offering high quality communications services will, we believe, appeal to existing subscribers of the enlarged business as well as new customers.
"There is a natural appeal for mobile, telephony, broadband and television content and ntl is now truly unique in its mass market product offering."
Virgin Mobile chairman Charles Gurassa said: "This offer reflects the strong operational and financial performance of Virgin Mobile and represents an excellent opportunity for Virgin Mobile shareholders to realise the significant increase in shareholder value since flotation."
Lovelace Consulting | 04.04.2006