Carphone Warehouse buys Tiscali for £263 million

After about a year of negotiations and will-they-wont-they speculation, Carphone Warehouse has finally snapped up Tiscali’s UK operations for a cool £263 million. This purchase means that Carphone has leapfrogged Virgin Media to become the second largest ISP in the UK, with some 4.25 million broadband subscribers.

More importantly, the buyout means that Tiscali customers, concerned that they may lose their connection can rest easy. It was thought that Tiscali had racked up debts of €500 million across the Continent, and rumours of the group going into administration had subscribers understandably worried.

Tiscali UK CEO Mary Turner said: “It’s good news for our customers who will increasingly benefit from a group that has consistently championed best value and award-winning customer service.”

Carphone Warehouse chief executive Charles Dunstone also said: “It has been the longest deal I have ever worked on. I think it has been hard for the shareholders of Tiscali because during the process we had the collapse of the banking world and then the decline in the pound to the euro so we think this price is low.”

Tiscali’s UK operations were put up for sale more than a year ago, and the Italian firm spent most of 2008 looking for a buyer. Negotiations with Sky and Vodafone fell through after a figure could not be agreed on. It was thought that Tiscali were looking for £600

For Tiscali customers, service will remain as normal until June, when the transition will take place. If you’re a Tiscali subscriber, feel free to voice your opinions by adding a comment or using the contact form.

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