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Virgin Media and O2 announce UK merger


In a deal worth £24 Billion that is likely to close in mid-2021, the parent companies of Virgin Media and O2 have confirmed that the two will merge. The 50-50 joint venture will invest £10 Billion over the next five years, reports TVB Europe.

The new company will be a nationwide integrated communications provider with over 46 million video, broadband and mobile subscribers and £11 billion of revenue. It has ambitions to challenge in the B2B market, with cloud, big data, Internet of Things and cybersecurity services.

According to independent analyst Alex DeGroote:

“O2 is already the UK’s number one in mobile, Virgin has around 6 million cable and broadband users. Consolidating the two entities means consumers can get the full suite of mobile; fixed line; broadband; and TV. Hence the deal now increases the competition for the likes of BT, Vodafone and Comcast/Sky.

The UK consumer should benefit from this, in terms of competitive pricing. At the same time, these deals are hard to execute, and with the current pandemic in the foreground, integration of two complex operations will not be simple. Telefonica has been looking for a solution to its O2 ownership for some time, this joint venture delivers it.”



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