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Vodafone Talks Could Lead to UK Tie-Up with BSkyB

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UK based Vodafone and the satellite TV broadcaster, BSkyB are reported to have been holding talks about a possible joint venture between the two companies.

BSkyB was recently considered to be a potential takeover target for Vodafone, but the latest talks are not thought to involve an outright purchase.

The two firms are said to be concerned about the surging expansion of the dominant landline operator, British Telecom (BT) into more media services, the core market for BSkyB, and a fresh move into mobile services.

Citing unnamed sources, the Sunday Times said that BSkyB and Vodafone have discussed striking deals on Sky's sports and movie channels and is collaborating on a high-speed broadband service with Vodafone's rival EE.

BSkyB has a sizable domestic broadband internet division in addition to its satellite TV broadcasts.

Vodafone could resell Sky services, offering quad-play options to its subscribers.

On the web: Sunday Times

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Tags: bskyb  vodafone  UK