Feeds

Tiscali buys LineOne

Waited six months and saved £340 million

  • alert
  • submit to reddit

Security and trust: The backbone of doing business over the internet

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

New hybrid storage solutions

More from The Register

next story
Hey, Scots. Microsoft's Bing thinks you'll vote NO to independence
World's top Google-finding website calls it for the UK
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
OECD lashes out at tax avoiding globocorps' location-flipping antics
You hear that, Amazon, Google, Microsoft et al?
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.