Virgin Media To be Sold?

Soldato
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afraser2k said:
Just what VM doesn't need, more job cuts/outsourcing that will inevitably come with this sale.

Exactly, the first thing private equity firms do is force 'efficiency savings' which means job cuts.

They specialise in buying up businesses and then selling the individual parts for a profit, for example they could sell the telephone wing of VM to another provider for a tidy sum.

However if Branson stays on the board i'd hope that things could turn out for the best, although i don't think this is the best move for its customers.
 
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chimaera said:
Exactly, the first thing private equity firms do is force 'efficiency savings' which means job cuts.
Which might make things worse, which isn't what they're after. They want to make a profit, and the only way they can do that is with more satisfied customers.

They tend to cut the crap, reorganise places, take on a huge amount of debt (things that would ordinarily scare the hell out of shareholders in normal PLCs) and make them much more profitable. How they do it and what effect it has on either the workforce or the customers varies - so we'll have to wait and see.
 
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FFS just when we get a nice 20 meg connection, been with telewest then ntl/virgin for 6 years never had a problem with them, I just know they will ruin the broadband section.
 
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cheets64 said:
FFS just when we get a nice 20 meg connection, been with telewest then ntl/virgin for 6 years never had a problem with them, I just know they will ruin the broadband section.
If they ruin it, it's not exactly going to be profitable, is it?

It has to be profitable - the amount of debt these Private Equity deals take on as leverage mean there are potential huge profits for them as a result, but it means that there are potentially huge losses if they don't.
 
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csmager said:
If they ruin it, it's not exactly going to be profitable, is it?

It has to be profitable - the amount of debt these Private Equity deals take on as leverage mean there are potential huge profits for them as a result, but it means that there are potentially huge losses if they don't.

But how can they make any money out of it, the whole tv/phone/internet is flooded with compaines, VM just put up the price of 20 Meg to £37 from £35 so any firm coming in cant raise prices, they can only sack staff and that will just mean the network will become like ADSL and I hope they dont sell off areas of the cable network to other compaines.
 
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cheets64 said:
But how can they make any money out of it, the whole tv/phone/internet is flooded with compaines, VM just put up the price of 20 Meg to £37 from £35 so any firm coming in cant raise prices, they can only sack staff and that will just mean the network will become like ADSL and I hope they dont sell off areas of the cable network to other compaines.

How is the market flooded with TV Companies. On pay TV there is only two main players on subscription services with Sky & VM ?

I agree with csmager. The market is crying out for convergence and not divergence. VM realistically are the only ones who can offer a decent TV, Cable Broadband and Phone service if it's all working. If they do invest they must be able to see that some areas of the business can make profit. It's also worth noting that for the first time in a number of years, Cable outperformed the number of new accounts opened for their TV service compared to SKY so it's not all bad news
 
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I get confused with all the different letter heads, first C&W then NTL then NTL/Telewest then VM and now....?

Who supplys my BB, I've forgotten
 
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BenST said:
I get confused with all the different letter heads, first C&W then NTL then NTL/Telewest then VM and now....?

Who supplys my BB, I've forgotten
Bet it feels like that! IIRC, NTL bought out C&W, then merged with Telewest to form NTL:Telewest.

NTL:Telewest then bought Virgin Mobile and changed the branding to Virgin Media, paying Branson's outfit a guaranteed £8.7m/year for the privelege of using the name. Branson's also now the largest shareholder at 10.7% (as he already was a large shareholder in NTL, the aquisition of Virgin Mobile just strengthened his position).

So it's still NTL:Telewest, just Branson now owns more of it than he used to.
 
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