BT enters exclusive negotiations to buy EE for £12.5bn, convergence is good

BT enters exclusive negotiations to buy EE for £12.5bn, convergence is goodIn the tech world, you’re no one if you’re not buying other companies. Apple bought Beats, Microsoft acquired Skype, Facebook picked up WhatsApp, Lenovo nabbed Motorola…

We heard a few weeks ago that BT was interested in O2 (which essentially started life as BT Cellnet), but it turns out the telecoms colossus is more interested in EE, with exclusive negotiations now underway.

BT released an official statement a couple of weeks ago in response to media speculation, confirming it had “received expressions of interest from shareholders in two UK mobile network operators”, one of those being O2.

The other was presumed to be EE, and it turns out that was right on the proverbial money, as confirmed in a further statement.

In a nutshell, BT is currently in exclusive negotiations with EE’s parent companies Deutsche Telekom and Orange. If those negotiations are successful, BT will pick up EE for a cool £12.5bn.

The exclusivity of “several weeks” is of interest, since Three Mobile was also rumoured to be interested in a bid for EE. You snooze, you lose.

BT says it’s excited about the prospect of acquiring the UK’s most advanced 4G mobile network. Importantly, it’ll become a “quad” player akin to Virgin Media, offering TV, broadband, mobile and landline services.

Read more about: 3 MobileEEO2

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JanSt / MOD  Dec. 16, 2014 at 13:35

If that kind of convergence were so very good, why doesn't the state just take all those service
industries back from the highway robbing capitalists? "We have to privatise" and break up and split and blah blah blah to make things more efficient and profitable...." - And whooooosh.... then suddenly everything must "converge" - i.e. hoarding. I.e. monopolising. I.e. become states within states, while we cannot even vote for CEOs and CTOs, and CFOs.... Not that voting ever solved much :p
Oh, um... merry Christmas.

loofer  Dec. 16, 2014 at 14:51

Completely agree, I think every thing which can reasonably be considered a necessity in modern times should be stated owned. Run like a private enterprise to strip out inefficiencies that tend to creep in state-owned organisations but it should be not-for-profit.

The idea of competition driving value for consumers works in theory but when you start to get monopolies then then the consumer can loose out and so can small scale suppliers who also get squeezed.

In addition to the usual utilities of water/gas/electric I would also include
Mobile telecoms
Fixed Line broadband
Car Insurance

JanSt / MOD  Dec. 16, 2014 at 14:58

yep... now we only need to ensure the 99.999% get to own the state - rather than the 0.001% .... Grrrrrrrrrrrrrrrrrr........


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