Sky’s parent company British Sky Broadcasting (commonly abbreviated to BSkyB) has announced the acquisition of Virgin Media Television or VMtv for 160 million pounds in an all cash deal, both companies have also entered into a number of agreements providing for the broadcasting of certain Sky standard and high-definition channels on VMtv.
BSkyB will initiall pay 105 million pounds in cash on completion of the deal and the remainder after the regulatory process according Regulatory News Service statement by the company.
“The sale of our channels business has generated substantial value. The deal will allow us to focus more closely on our strategy of exploiting Virgin Media’s super-fast connectivity.” says Neil Berkett,Virgin Media Chief Executive Officer. Neil Berkett, who was appointed to the position in 2008, changed Virgin Media’s focus to broadband and basic TV rather than competing with Rupert Murdoch’s BSkyB in premium Television segment. Berkett plans increase investment in high-speed Internet access this summer.