The Carphone Warehouse drops Tiscali bid by £150m

LONDON - The Carphone Warehouse has bid £150m less for Tiscali than anticipated today, in a deal which values the broadband company at less than £450m.

Negotiations are being handled by Tiscali's advisers JP Morgan and Banca IMI after the company put itself up for sale in May. It had been expecting a valuation closer to £600m, but the auction for the British arm of the internet supplier has taken longer than expected, significantly overrunning the company's own self-imposed end-of-June deadline.

Other initially interested parties have already walked away from the table, including BT, Vodaphone and BSkyB, during a summer that has seen the company lose 37,000 customers and its share price fall by 46%.

After a £1.1bn deal in May, The Carphone Warehouse paid off its debts by selling half its retail division to Best Buy of America. It currently has 2.8 million broadband customers; adding Tiscali would allow it to leapfrog BT to become the top supplier in the UK.

Have your say...

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Media Week Jobs
Search for more media jobs

Latest

Watch the first YouTube clip, nine years on

Watch the first YouTube clip, nine years on

This week marks the ninth anniversary of the first clip uploaded on YouTube, a 19-second video of YouTube co-founder Jawed Karim at the San Diego Zoo.

Share
Yahoo hosts exclusive X-Men: Days of Future Past films

Yahoo hosts exclusive X-Men: Days of Future Past films

Yahoo has partnered with film distributor Twentieth Century Fox to create a global content hub on its Yahoo Movies platform for new release 'X-Men: Days of Future Past'.

Share
My Media Week: Stuart Taylor

My Media Week: Stuart Taylor

This week, Stuart Taylor, chief executive, Kinetic UK, is inspired by the new tech coming to market and how wearables and smart cities will impact on OOH.

Share

Get news by email