So the straight buyout hasn’t happened, though a variation of it has, after news leaks on this deal over the last week or so: Italian Internet firm Tiscali will merge its UK operations with UK IPTV pioneer Homechoice to increase the content it provides to its clients.
Video Networks, which offers TV, broadband and telephone services under the Homechoice brand, will contribute its British operations in exchange for 11.5 percent of Tiscali UK, and may increase the stake to 20 percent if profit targets are met…Tiscali thus becomes a “triple play operator” in the UK.
After three years, Tiscali will have the right to buy—and the British company will have the right to sell—Video Network’s stake in Tiscali UK.
Tiscali has a 10 percent market share in the UK, behind BT, NTL and AOL.
Related:
—UK IPTV Player Homechoice About To BE Bought By Tiscali, For $190 Million: Telegraph
—UK IPTV Pioneer HomeChoice Up For Sale; Valued At $350 Million
—BSkyB Looking at Homechoice? Company Says Not For Sale