BSkyB CFO indicates Tiscali UK purchase could make sense

10 Dec 2008

British triple-play provider BSkyB’s chief financial officer has said that it could make sense to consider the acquisition of the UK unit of Italian broadband operator Tiscali, Reuters is reporting. Comments from BSkyB’s CFO Andrew Griffith suggest that the operator believes purchasing Tiscali’s British operations could significantly increase the number of households it offers internet services to. ‘At the moment, we only address nine million homes, so Sky broadband products, great value though they are, only speak to customers who are willing to take the TV offering,’ Mr Griffith said, adding, ‘Something like Tiscali would allow us to extend our offering…to another 16 million households, and that potentially could have value.’ Reports last month suggested the two companies were in talks but BSkyB has not officially commented on the matter. The sale of Tiscali’s British operations is expected to raise approximately GBP500 million (USD741 million).

United Kingdom, BT Group (incl. Openreach), Tiscali UK