NTL acquires Virgin Mobile for $1.67 Billion

UK based wireless-service provider Virgin Mobile Holdings has confirmed that they have accepted a $1.67 billion offer from NTL Inc. NTL is the nation’s largest cable-television provider and would now own the Richard Branson owned telecom firm.

The deal would see Branson’s Virgin Group accepting 67 pence in cash plus 311 pence in NTL stock per share for its 71.2 percent of Virgin Mobile. Acquiring Virgin Mobile would enable NTL to add a cellular offering to its Internet, television, and fixed-line phone packages.

This would then help the company attract more consumers who would prefer to go for a converged package instead of going for multiple service providers for various services. NTL faces competition from several companies like Verizon Communications Inc. and Cable & Wireless Plc and this deal would enable them to compete better in the UK market.

NTL would be adopting Virgin’s brand on all products and this deal is their second major deal in less than a year. They acquired Telewest Global Inc., Britain’s second-largest cable operator, for $6 billion in October 2005.

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