NTL will be re-branded Virgin following the deal according to the Sunday Telegraph, in a takeover that will create a group with 9 million direct customers, 1.5 million more than BSkyB.
The new group will also have 2.5 million broadband customers, 4.3 million fixed-line telephony accounts and more than 5 million mobile phone customers.
It should be a major competitor to BSkyB in the pay-TV market, with ability to offer ‘quadruple play’ services – mobile, fixed-line phone, TV and broadband. BSkyB, following its recent £211million takeover of Easynet, can only offer triple play services of fixed line, broadband and pay-TV.
The new organisation would be looking to compete with Sky for Premier League rights that come up for renewal next year. The European Commission has already insisted that Sky will not be able to retain its monopoly of live coverage after the next deal.
The deal amounts to a reverse takeover of by NTL, which will need to win support for the bid from shareholders who own the 28 per cent of Virgin Mobile that is publicly traded.
It is also subject to the cable company completing its £3.4billion merger with Telewest.
