NTL Confirms Virgin Mobile Buyout Intentions

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1:07 am on December 5, 2005 | Category: Business, Telecom Services

The UK’s largest cable company, NTL, has just officially confirmed its intention to purchase Virgin Mobile Corporation.

The offer includes a total buyout price of £817 million (US$1.4 billion), and has been approved by billionaire tycoon, Richard Branson, who is Virgin Mobile’s largest shareholder.

Of course, the offer won’t be finalized until it gains the support of the company’s board. In a statement this morning, the Virgin Mobile board confimred that it is considering NTL’s offer, but isn’t making any promises just yet.

“In considering its response, the board of Virgin Mobile will be mindful of its duty to maximise value for all shareholders,” said the statement.

If this offer does go through, it will put the newly formed Virgin-branded company in an excellent position to compete in the much acclaimed “quadruple play” cable, telecom, broadband, and wireless market.