Feeds

Tiscali buys LineOne

Waited six months and saved £340 million

  • alert
  • submit to reddit

3 Big data security analytics techniques

Tiscali has bought British ISP, LineOne, for E100 million (£62.3 million) in paper and a small amount of cash.

The deal was completed this morning - some six months after it was reported that joint-owners, BT and United News and Media, were looking for a buyer.

At the time some said LineOne was worth E642.5 million (£400 million).

Today's sale price - E80 million (£50 million) in shares and E20 million (£12 million) in cash - represents a significant discount on that figure.

Putting a brave face on things a spokesman for BT said: "In this current market it is a good deal."

However, the money received from this deal will do little to alleviate BT's debt problem. Indeed, it highlights one of the problems BT faces in paying off its debts as it tries to sell assets that simply aren't worth what they used to be.

Tiscali reckons this deal puts it well on course to be the third biggest ISP in the UK behind Britain's biggest French-owned ISP, Freeserve, and AOL UK.

However, Tiscali's strategy of snapping up ISPs as a way of growing its business means that - in the name of consolidation - casualties are almost inevitable.

Tiscali is already carrying out a root and branches review of its operation in Britain following the company's acquisition of WorldOnline and LibertySurf. Only last week it made 53 people redundant with more expected to come.

It seems hard to believe that employees at LineOne will be immune from this process of consolidation.

No one was available from Tiscali or LineOne to comment by press time. ®

Related Stories

World Online/Tiscali begins 'massacre of UK employees'
Tiscali fave to buy LineOne
LineOne definitely for sale

Combat fraud and increase customer satisfaction

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.