NTL and Virgin Mobile

NTL is buying Virgin Mobile.

From Yahoo News:

“UK cable company NTL has agreed to buy Virgin Mobile in a deal that could be worth up to 984.9 million pounds ($1.7 billion), creating a “quadruple-play” mobile, fixed-line, broadband and TV service under the Virgin brand.”

“This deal has taken a long time to come through. Considering that Virgin Mobile’s board has backed it, the minorities should have no problem accepting it,” said Damien Chew, analyst at ING Financial Markets.”

More data points from Rafat:

• “Virgin Mobile is the UK’s largest MVNO with more than 4.3 million customers.
• After the acquisition of Virgin Mobile, would be the fifth largest provider of mobile telephony in UK
• The Brand Licence also permits ntl to rename its ultimate public holding company with a name that includes the Virgin name.
• Virgin Mobile will retain its existing brand and will continue to be based in the UK.
• Virgin Mobile’s operating business will continue to be led by members of Virgin Mobile’s current management team, and it is intended that a marketing director from Virgin will join ntl, bringing Virgin’s brand expertise to the ntl management team.
• The Brand Licence is for a 30 year period, although ntl may terminate it at the end of the tenth year of that period on one year’s notice.
• NTL also expects to benefit from Virgin Mobile’s high street presence (which includes over 100 “stores within stores” in Virgin Megastores and WH Smith stores, through which it intends to sell other ntl products).”