Feeds

Sky in talks to sell Easynet, claim insiders

Management buyout chatter

Top 5 reasons to deploy VMware with Tegile

Exclusive Sky has held talks to spin off its networking business Easynet, according to insiders.

Senior management at Easynet, which Sky bought for £211m in 2005, are planning a buyout, sources who spoke on condition of anonymity said.

Easynet's CEO David Rowe and chief planning and technology officer Justin Fielder are understood to have held meetings with Sky last week, and a deal is expected soon. Competing talks between Sky and Talk Talk are said to have broken down.

Easynet, founded in 1994, contributed £202.2m to Sky's overall revenues in 2008/09 of £5.3bn.

Sky would retain control of the network under a management buyout, while an independent Easynet would rent capacity from Sky's Network Services unit.

The infrastructure was used by Sky as a springboard for its successful leap into the home broadband market, and was the main target of its acquisition of Easynet. Since entering the fray Sky has continued Easynet's aggressive unbundling strategy, and is now the UK's fourth largest ISP with more than 2.5 million subscribers.

A Sky spokesman today declined to comment on what he called "market speculation". At time of publication Easynet had not returned a call requesting comment. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Of COURSE Stephen Elop's to blame for Nokia woes, says author
'Google did have some unique propositions for Nokia'
FCC, Google cast eye over millimetre wireless
The smaller the wave, the bigger 5G's chances of success
It's even GRIMMER up North after MEGA SKY BROADBAND OUTAGE
By 'eck! Eccles cake production thrown into jeopardy
Mobile coverage on trains really is pants
You thought it was just *insert your provider here*, but now we have numbers
Don't mess with Texas ('cos it's getting Google Fiber and you're not)
A bit late, but company says 1Gbps Austin network almost ready to compete with AT&T
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
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.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.