Link19 Feb 2015 09:19
Telegraph.co.uk
FINANCE
Sky in talks for O2 tie-up
Sky has previously rejected the mobile market on the basis it is not a household bill
Picture: PA
By Christopher Williams, Technology, Media and Telecoms Editor
5:43PM GMT 20 Jan 2015
Telefonica is battling Vodafone in its attempt to strike a seeking commercial partnership with O2, amid merger talks with Hutchison Whampoa
Sky has held talks with Telefonica, the Spanish owner of O2, about a commercial deal that could allow it to offer mobile service alongside television, broadband and home phone services.
The discussions have emerged as Telefonica is increasingly seen as under pressure in the UK market, having failed to persuade BT to buy O2 at the end of last year. It opted to enter exclusive negotiations to acquire rival mobile operator EE for £12.5bn instead.
Telefonica has also held talks to sell O2 to Hutchison Whampoa, the owner of Three. The Hong Kong conglomerate’s chief executive, Canning Fok, is seen by many industry observers as having the upper hand in negotiations, however, with Telefonica heavily indebted and having tried to sell to BT already.
Talks with Sky are understood to have focused on potential commercial partnerships. The Spanish media went so far on Tuesday as to claim Sky could rival Hutchison Whampoa to buy O2 for around £9bn.