Carphone Warehouse has announced that it has bought the UK assets of the Italian outfit, Tiscali, for £236m (down from an initial asking price of £600m), after talks with both Sky and Vodafone collapsed.
The acquisition means that Carphone is now the largest provider of residential broadband in the UK with a grand total of 4.25 million subscribers, said the Sky website. The reason, says the website, is that Tiscali required a massive injection of cash to move the company onto the next level and out of debt, and Carphone had the ready money to do just that.
Carphone chief executive Charles Dunstone said: 'We are delighted to be acquiring Tiscali's UK business - we know the business well and the fit with TalkTalk will be perfect.'
It will also mean that Carphone can save between £40 and £50 million per year by 2011.
Tiscali chief executive Mary Turner commented tha: 'The combination of TalkTalk and Tiscali will offer our customers, both residential and business, Britain's largest and best fully bundled network. The enlarged TalkTalk is perfectly positioned to meet and anticipate these demands.'
Click to read the Sky story