broadband news

Carphone Warehouse merges with US giant

Carphone Warehouse Group, which owns TalkTalk and AOL Broadband, has confirmed it will sell 50% of its broadband and telecoms retail operations to Best Buy for £1.1bn. The broadband and telecoms provider and retailer supplier will combine with the world's largest electronics retailer to form a new company, which will continue to offer broadband services, with each group owning a 50% stake. Broadband will remain a core part of the business under the Carphone Warehouse and Phone House brands.


The announcement comes after several months of speculation after Best Buy bought a 3% stake in Carphone Warehouse's broadband and telecoms business last year.The new company will consist of Carphone Warehouse's existing broadband and telecoms retail business of 2,400 stores, which operates in nine countries throughout Europe.

From 2009 onwards, the new company will start to create Best Buy stores in certain European markets. It will also expand the existing Carphone Warehouse broadband and telecoms retail presence in Europe to create a powerful new force in the electronics market offering broadband and telecoms solutions.

Carphone Warehouse will retain its fixed line telecoms business in the UK, which consists of TalkTalk, AOL Broadband and Opal. The proceeds of the deal will be used by Carphone Warehouse to pay down its debt and for investment in its remaining broadband and fixed-line business and infrastructure.

The company has also stated that it will now consider making a bid for broadband operator Tiscali, which proves that broadband is a core part of its future plans and that the broadband market continues to be very lucrative.


22/05/2008
Author: CompareBroadbandUK staff writer

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