NTL target of possible Take over/merger by AOL?

Coyote

NTL target of possible Take over/merger by AOL?
Story from The Register

Just wondering what people think?
NTL is a bit short of cash right now, which is why they slowed down the upgrade of the cable network.
But if AOL owned them they would have the cash to upgrade the network but would we want AOL running the cable network?
Quote
Richard Parsons, who will take over as CEO later this year, said: "Broadband is probably the most promising source of growth for our company for years to come. We understand this is where the game is going to be played in the next couple years in terms of growth opportunities."

Not sure I like AOL but someone who thinks like that I would like in Ireland.

Coyote

dahamsta

NTL UK != NTL IE ?

adam

BuffyBot

It's a rumour that's been around for a while.

Informed sources say it's not going to happen.

AOL are still reeling from their take over of Time Warner. Acquisitions, especially on that scale, don't seem high on their list of priorities right now.

Plus they would have to take over NTL's mountains of debt.

Of course, I could be wrong, it's happened a lot before

davros

A realistic alternative is that NTL will flog off its assets in Ireland as they did in Australia. This is probably not a core market for them and they need to clear down some debt.

I reckon ESAT might be interested in the cable system. It would give them an access network independent of Eircom.

I don't know what the competition authority would say about that (though if an AIB/BofI merger is possible, what isn't?)

dahamsta

A realistic alternative is that NTL will flog off its assets in Ireland as they did in Australia.

Both NTL Ireland and Chorus have been up for sale for quite some time now. No-one seems to be interested in buying them -- for good reason, some might say. They're both horrifically mismanaged, and their networks should probably be in a museum somewhere.

I reckon ESAT might be interested in the cable system.

I reckon that would require a high-level BT decision. I just can't see it happening tbh.

adam

BuffyBot

Originally posted by dahamsta
A realistic alternative is that NTL will flog off its assets in Ireland as they did in Australia.

Both NTL Ireland and Chorus have been up for sale for quite some time now. No-one seems to be interested in buying them -- for good reason, some might say.

At a stretch, I'd imagine AOL *might* be interested in buying up broken up bits of the group, such as cable networks in UK/France....can't see them having any interest in NTL Ireland though.

Also, their cable interests in the US is a lot more important than the situation would be here. When they purchased Time Warner in the states, TW already owned and operated the RoadRunner cabile network and ISP, plus cable TV...hence across the new company there was massive synergy (shudder at that word!)...internet, TV channels etc. This doesn't really exist in Europe, where AOLTW isn't heavily involved in broadcasting, so a cable network of their own isn't such an imperative...plus their user base is a lot smaller this side of the atlantic, and they would have to consider the costs against the benefits of buying NTL, then having to dispose of the many parts it doesn't need.

[Well it all makes sense in my head]
[Am very bored today]
[Will go now]
[Honest;)]

jmcc

Originally posted by dahamsta

Both NTL Ireland and Chorus have been up for sale for quite some time now. No-one seems to be interested in buying them -- for good reason, some might say. They're both horrifically mismanaged, and their networks should probably be in a museum somewhere.[/B]

When RTE/Eircom owned the company, they chronically underinvested in it. I think that the main motivation on this was that Eircom saw what was happening in the real world and did not want to create a possible opponent with the ability to break its monopoly.

I reckon ESAT might be interested in the cable system.

I reckon that would require a high-level BT decision. I just can't see it happening tbh.[/B]

Not BT but Deni$ O'Brien. This would give him a chance to get back into the game against Eircom. It would also provide him and his group of investors with an operation that could rip the heart out of Eircom's urban markets.

Regards...jmcc

SkepticOne

Much the same story came up a few months ago about AOL/Time Warner acquiring new broadband assets. Presumably, what they would do is buy some cable systems with full two-way capability that is not very profitable for NTL for a relatively low price. Then they would take advantage of their brand recognition and marketing ability to extend their brand into Europe.

If this speculation is correct, then they would not be very interested in the Irish operation. For a start, NTL Ireland is currently fairly profitable so the NTL group might want to hang on to it for the moment. Secondly, being a TV only system, AOL might see the problem with future competition with Sky.

What I don't see happening is AOL buying up a profitable system here and then spending a huge amount upgrading it to modern standards. AOL took advantage of the loony stock prices of the late nineties to purchase the big stack of existing infrastructure and TV expertise of Time Warner. I don't think they are really in the business of upgrading rusty cable systems in small countries. It would be nice if they did, of course.

That's my armchair assessment of the situation.

dahamsta

Not BT but Deni$ O'Brien.

I reckon that even Dinny's Massive Guff Engine[TM] would have difficulty talking his chums into buying out NTL Ireland, with the enormous investment that would be required. Especially after the high-profile Eircom affair.

adam

timod

I'd imagine any AOL takeover of NTL (well in the UK anyway) would have to be passed by whatever competition authority is around.

Seriously though, I'd be well up for Denis O'Brien getting back into the business. He's like the Michael O'Leary of Telecoms

I wonder if the committee would be interested in contacting him to get his "support" for IOFFL - he is officially independent now, and a well known high-profile name might do us good.

(or am I opening a can of worms?.....)

Tim

dathi1

He's like the Michael O'Leary of Telecoms

If Michael O'Leary was Taoiseach you'd have people knocking down the door to put DSl in.

Boston

Originally posted by dahamsta
Not BT but Deni$ O'Brien.

I reckon that even Dinny's Massive Guff Engine[TM] would have difficulty talking his chums into buying out NTL Ireland, with the enormous investment that would be required. Especially after the high-profile Eircom affair.

adam

probalem is that ntl want nearly what they paid for the company back, wereas most people realize how its not worth half that

dahamsta

If Michael O'Leary was Taoiseach you'd have people knocking down the door to put DSl in.

Not a good thing if they run it like Chorus, where they knock your door down to put cable in, take your money, and never actually put it in. Shower of incompetent muppets.

adam

Coyote

Originally posted by dahamsta
NTL UK != NTL IE ?

adam

No but if they’re talking about buying part or all of NTL then Ireland is a large but nonessential part of NTL which NTL might sell.

There is one or two thing, Cablelink has over 80% share market in the major cites in Ireland which is one of the highest in the EU. Ok it’s old but if someone like AOL/TW bought it they would have the TV rights, Internet content and name to sell it, there are no real Digital Terrestrial TV services in Ireland. (I know about sky, I have it, but in the next few years it's not going to be able to do internet/telephone and digital TV in one package)
Ireland’s cable network could be worth a lot of money to the right people with a bit of money and time.
NTL’s problem is that it’s out of cash. That is why it can not upgrade the network fast enough but when they do they make a lot more money from it. Then they’re not just selling TV there selling TV/Telephone/Internet and they make a higher margin of profit.
Which is why they have put Ireland on the back burner, it’s a 5-year return minimum. So what they’re doing it spending time and money is setting up the easy two-way cable, and our holding off spending large amounts of money, which will not make returns soon enough to help them out of there debt.

I would think NTL would not like to sell networks that it can make money off soon and for little investment. And Ireland is a network that they will have to spend a good bit of money to make it worth while.
AOL on the other hand could if the price was right buy a high market share cheep but would have to upgrade it to make the best levels of profit, but they have the cash unlike NTL.

Hey it might all be pie in the sky, or it might not be.
I'm not saying it's going to happen but worth keeping a eye on.

Coyote