Vodafone NZ to merge with Sky Network

$2.4 billion deal to offer customers packages of entertainment, broadband and mobile
Vodafone building in New Zealand
Vodafone building in New Zealand

Share

Vodafone is merging its New Zealand unit with the country's biggest pay-TV firm, Sky Network Television, in a $2.4 billion deal that will enable it to offer customers packages of entertainment, broadband and mobile, according to a Reuters report.

Sky's shares jumped nearly 20 percent.The deal will possibly give Sky Network the chance to expand beyond its traditional satellite broadcast market, which has been shaken up by the arrival of Netflix and Apple's online content service.

Vodafone said the tie-up would enable it to offer Sky's sports and entertainment programming to its mobile and fixed-line subscribers who increasingly wanted to access more content and communications from a single provider.

Under the terms of the deal announced on Thursday, Sky will buy the mobile phone provider for NZ$3.4 billion ($2.4 billion) in total, including NZ$1.3 billion in cash, to be funded through new debt, and the rest in new Sky shares. Vodafone will, however, own 51 percent of the combined entity after the deal, which is subject to regulatory clearance, the firms said.

Mobile operators and cable and satellite pay-TV groups in Europe, the United States and elsewhere are scrambling to tie-up so they can offer "quad play" packages of mobile, fixed-line, broadband and TV service.

 

Editor's Choice

Emerson expands analytics platform for industrial enterprise-level wireless infrastructure management
Plantweb Insight platform adds two new Pervasive Sensing applications that manage wireless networks more efficiently with a singular interface to the enterprise
Digitalisation seen as a competitive advantage by Middle East private businesses
Nearly 80 per cent of private business leaders acknowledge that digitalisation can impact business sustainability
Etisalat introduces Multi-Access Edge Computing architecture delivering best-in-class video streaming performance for 5G networks
MEC architecture achieves performance gains of as much as 90% in video streaming, validating how ultra-low-latency applications will be delivered over 4G and 5G networks

Most popular

Don't Miss a Story