| Watching You |
11-07-2008 14:56 |
Re: Can someone confirm this...
wallis00
Quote:
I've allways been under the impression that Virgin Media was owned by Sir Richard Branson or he has Shares in the company. I've never been certain and can't back up what im saying to say if its true or false.
However I was at work Yesterday and one of the Security Guards said he used to work for Virgin Media as an Engineer and said to me that its owned by NTL:Telewest still but uses the Virgin brand so Sir Richard Branson gets paid a loyalty fee.
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Some basic Economics 101, when a company like Virgin or NTL needs to raise capital there are several ways they can go about this, one borrow from banks, issues bonds or float/ go public issuing shares. Or sell off part of the company as NTL did to Virgin, especially if the brand image is poor.
All have their risks, as every year stockholders demand their returns (profits) and unless you delivery you can be voted out by shareholders. As with the case in Northern Rock borrowing from banks is equally risky. Because the brand of Virgin is strong there may be a 51% (49%) ownership by NTL or Virgin (I am guessing here). Either way its doesn’t matter too much as long as the brand (Virgin) remains strong. After all would you rather fly NTL Airlines or Virgin Atlantic??
(P.S) Virgin Airlines is part owned by Singapore Airlines who have 49% stake in the company.
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