Sky 'considering bid for AOL's access arm'

Satdude

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Sky 'considering bid for AOL's access arm'

Yes A similar article as been posted there have been many on the same subject!!

Satellite broadcaster BSkyB is reportedly considering a bid for AOL UK's internet access arm as part of its drive into broadband-delivered digital television bundled with telecommunications services.

According to market speculation Sky—which last year acquired broadband service provider Easynet for £211m—and BT are favourites in the bidding for the Time Warner-owned asset. AOL's UK internet access unit is on the market for £1bn, though the auction is not expected to raise more than £660m.

AOL is switching its business model away from charging for access—a market now dominated by cut-price broadband providers such as Orange and Carphone Warehouse—to relying on advertising. Carphone has also been mentioned as a possible acquirer of the AOL business which has 2.2m customers.

The AOL business is being valued at between £200 and £300 per customer, hence the possible price tag of £660m.

Potential bidders for AOL's internet access arm needed to express an interest before last night's deadline expired.

In February BSkyB CEO James Murdoch said Sky would launch its consumer broadband service in the second half of 2006.

Regards Satdude. :D
 
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