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Virgin Media set to re-brand again?

# 8 July 2007, 20:39 by Gavin

Investment group are contemplating re-branding Virgin Media, if their bid is successful, in a bid to warm relations with satelite-rival, BSkyB, The Observer has learned.

The US private equity group Carlyle has been eyeing up Virgin Media and is looking to secure VM with a £5.5 Billion bid. If successful, they believe it might be the best way forward for VM to restore better relations with BSkyB. Such a move could see the return of the Sky Basic channels, including Sky One and Sky News, which were removed from the VM platform earlier this year following a dispute over their value.

Such a move could prove unpopular with customers though, as VM have recently spent £25m on the rebranding from when NTL:Telewest merged with Virgin Mobile. Dissassociating themselves from the strong branding of Virgin, renouned for solid customer service, could also prove a mistake, City sources have warned.

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