As the Telegraph reported, Chris Larson, a Microsoft co-founder who has a controlling stake in the company, last year warned it could run out of cash unless it found further funding. Last November BSkyB was said to be considering a bid for the HomeChoice service as the satellite broadcaster embarked on its broadband strategy, and attempt to take a stake in the UK's emerging internet protocol television (IPTV) market. Sky eventually bought broadband service provider Easynet.
HomeChoice has just under 50,000 subscribers in London and Stevenage. Video Networks had sought to raise new equity funding as it rolled out its network via local loop unbundling—placing its own equipment within BT telephone exchanges.
The Telegraph said Tiscali has 4.5m broadband subscribers, with 1.1m in the UK.
By buying HomeChoice Tiscali would greatly expand its UK presence in the local loop.
Lovelace Consulting | 10.08.2006