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Talk Talk confirms Tiscali UK acquisition

Manoj Solanki, Friday May 8, 2009 - 3:02 PM

Carphone Warehouse has confirmed its Talk Talk division is to buy Tiscali’s UK operations.

After many, many months of trying to flog the Tiscali business due to intense competition, and the increasing debt problems, the UK operations of Tiscali, mainly its broadband business, has been sold to Talk Talk for £236 million.  A veritable bargain for Carphone Warehouse.

Previous estimations of a buyout came in at over twice this amount, but after Tiscali’s debt problems became more apparent, it appeared no company was willing to pay anything more than half a million.

At several stages many of Talk Talk’s competitors were linked with Tiscali, including BT, Vodafone and Sky.

Talk Talk plans to merge in Tiscali’s broadband footprint, much like AOL, into its own to create a single unbundled network which the group states will produce significant cost savings.

The new Talk Talk business will now have 4.25m broadband customers and becomes the largest residential broadband provider in the UK.

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Article keywords:   Broadband, Carphone Warehouse, Llu, Talk Talk, Tiscali