NeoMedia Technologies, Inc (NEOM)

[JPetroInc]

NTL Telewest completes merger with Virgin Mobile

by Mark Banham Brand Republic 4 Jul 2006

http://www.brandrepublic.com/bulletins/digital/article/567553/ntl-telewest-completes-merger-virgin-m...

LONDON - Cable giant NTL Telewest has completed its £962m deal to buy Virgin Mobile, creating one of the UK's largest broadcast and telecommunications companies.

The two will continue to operate as separate entities until early 2007, when they will start marketing under the Virgin brand, although NTL insisted that there would be no change to the services or terms and conditions of either company's customers until then.

The deal means that the merged company will now combine services to offer customers what has been dubbed a 'quadruple-play' of television, internet, mobile and landline services.

NTL will now be permitted to use the Virgin Mobile brand for all its consumer activity and its full portfolio of products. It is expected the merged company will rebrand as either Virgin Media or Virgin Television.

Stephen Burch, chief executive of NTL, said: "This is a transformational deal for NTL and good news for UK consumers.

"Virgin Mobile has a justified reputation for being one of the country's most customer-focused companies. This combined with NTL's portfolio of competitively priced, cutting-edge products, will create a formidable competitor in the UK's fast changing communications and entertainment industries."

In May, NTL named senior two members of the Virgin management team, James Kydd and Ashley Stockwell, as its top marketers to launch the newly merged business under the Virgin brand.

The cable giant handed Kydd the role of joint managing director of marketing, alongside Stockwell as joint managing director for brands.

In May the company reported revenue figures for the first quarter of 2006 of £611m, up £127m on the final quarter of 2005, despite confirming that it would be looking to make up to 6,000 redundancies, some compulsory, by the end of 2007.

The merger of NTL and Virgin Mobile was first mooted at the end of 2005. With the merger complete Virgin Mobile's shares have now been de-listed from the London Stock Exchange.