BSkyB clears deck as it closes on Tiscali

Tiscali has confirmed that BSkyB is negotiating to buy “certain UK assets” –assumed to be its UK broadband business.

BSkyB’s Murdoch stablemate The Sunday Times reported that the company was front runner to snap up Italian-owned Tiscali’s 1.84-million subscribers in a deal worth £450m.

Carphone Warehouse is reported to have dropped out of the running.
BSkyB, in a move perhaps designed to ensure regulatory approval of the deal, announced today that it had settled a long-running dispute with VirginMedia which saw many of its channels dropped from the cable company’s services.

This means that from November 13 Virgin Media subscribers will have access to Sky's Basic channels, including Sky1, Sky2, Sky3, Sky News, Sky Sports News, Sky Arts 1, Sky Arts 2, Sky Real Lives and Sky Real Lives 2.

Virgin Media already offers BSkyB’s Living, Living 2, Bravo, Bravo 2, Trouble, Challenge and Virgin 1 channels.

The rival companies have agreed to drop all High Court proceedings against each other.

Sky chief executive Jeremy Darroch said: "This is great news for Sky and Virgin Media customers alike. We want our channels to be enjoyed by as many people as possible so we're delighted to secure their return to the Virgin Media platform."

Virgin Media said all its digital subscribers would get the Sky3, Sky News and Sky Sports News channels; L-package subscribers will also get Sky1 and Sky2;XL subscribers will get Sky Arts 1, Sky Arts 2, Sky Real Lives and Sky Real Lives 2; Variety-pack subscribers will get Living, Living 2, Bravo, Bravo 2, Virgin 1 and Challenge; Trouble will come with the children's pack.