Feeds

BSkyB buys Amstrad

Sugar turns to Murdoch

Boost IT visibility and business value

BSkyB is paying £125m for Amstrad - Sir Alan Sugar's set-top box manufacturing firm.

Sky is offering 150 pence for each Amstrad share, which is 23 per cent more than the shares were fetching on the open market last night. On the London Stock Exchange Amstrad shares have jumped almost 20 per cent to 145p on the news. Amstrad has fallen steadily this year from high of 199p per share in March.

Sir Alan Sugar will not be fired, he will continue to run the business for its new owners. Sugar owns 27.9 per cent of Amstrad and will get £35m if the deal goes through.

Amstrad makes 75 per cent of its revenues from selling Sky its set-top boxes. But currently Sky takes only 30 per cent of its set-top boxes from Amstrad.

The deal means Sky gets inhouse set-top box design, which it hopes will allow it to speed up development of the boxes and therefore the services it can offer its customers. It expects the deal to reduce the cost of procuring its boxes and to add to the bottom line in the first year.

Sir Alan Sugar said: "Sky is a great British success story. I'm proud to have worked so closely with it, and I look forward to continuing to play a part in this exciting business."

The deal needs to be approved by Amstrad's shareholders, but has already been approved by the boards of both Sky and Amstrad.

Sky's press release is here. ®

Boost IT visibility and business value

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.