Liberty Global in talks to merge Virgin Media with O2

[offmore15]

Originally Posted by spiderplant

That wouldn't comply with Virgin Group branding rules. All the companies are "Virgin <something>".

virgin02media then

[newapollo]

VOMITT - Virgin, O2, Mobile, Internet, TV, Telephone
VO2, (most people don't say Virgin Media, they say Virgin)

[1andrew1]

Originally Posted by Pierre

Well if you can remember far back enough when BT launched O2 the full name was:

mmO2

So they could bring it back to VMO2.

But no, they will keep both brands. This is a Joint Venture not a merger. They still have to keep a certain independence as if it doesn't work out they can separate.

I like the VMO2 idea as the holding company's name.

It's three things
- It's structured as a takeover of Telefonica UK (which trades as O2) by Virgin Media as that ensures Virgin Media's valuable tax credits can still be used.
- It's an effective merger of Virgin Media Ltd and Telefionica UK Ltd as it's a combination of equals.
- The new entity will be 50-50 joint venture between Telefonica SA and Liberty Global plc.

---------- Post added at 11:40 ---------- Previous post was at 11:30 ----------

Originally Posted by offmore15

virgin02media then

Is "Media" a relevant term for what is now a telecoms company?

[Pierre]

Originally Posted by 1andrew1

It's three things
- It's structured as a takeover of Telefonica UK (which trades as O2) by Virgin Media as that ensures Virgin Media's valuable tax credits can still be used.
- It's an effective merger of Virgin Media Ltd and Telefionica UK Ltd as it's a combination of equals.
- The new entity will be 50-50 joint venture between Telefonica SA and Liberty Global plc.

---------- Post added at 11:40 ---------- Previous post was at 11:30 ----------


Is "Media" a relevant term for what is now a telecoms company?

https://www.nationalconnectivitychampion.co.uk/

"national connectivity champion" just trips off the tongue, doesn’t it?

[1andrew1]

Originally Posted by Hugh

"national connectivity champion" just trips off the tongue, doesn’t it?

International cash cow champion would be a more honest description.

[Skie]

Champion of poor customer service and free coffees.

[Kushan]

https://www.ispreview.co.uk/index.ph...uk-merger.html

Ironically, the EU has overruled its decision to block the O2/Three merger from a few years ago. Too late now though, just thought it was an interesting development.

[1andrew1]

Originally Posted by Kushan

https://www.ispreview.co.uk/index.ph...uk-merger.html

Ironically, the EU has overruled its decision to block the O2/Three merger from a few years ago. Too late now though, just thought it was an interesting development.

I wonder if Three and Telefonica can seek compensation?

[Pierre]

4 years on..........reason enough to be free of the ECoJ

[Horizon]

Originally Posted by 1andrew1

I would imagine that post-merger, the O2 shops will market Virgin Media's services as well, in the way that the EE shops now market BT services - well, once they reopen, that is!

I agree with that and probably indicates the likelihood that the Virgin brand will get ditched.

[Pierre]

Originally Posted by Horizon

indicates the likelihood that the Virgin brand will get ditched.

Not likely....at all.

Both brands will continue. This is a JV, not a merger. A subtle but important difference. Both brand identities will continue until one party decides, and stumps up the cash, to buy the other one out.

[Horizon]

I disagree. Branding has nothing to do with whether the company is a result of a merger or JV. The parent cos will agree what branding the JV will use - they probably have already.

Using different brands by one company can in some cases be confusing and I see no benefit in retaining both brands post merger. Why pay Richard Branson money to use the Virgin brand when there will be another choice?

Perhaps there may even be a new brand altogether.

[Pierre]

Originally Posted by Horizon

I disagree. Branding has nothing to do with whether the company is a result of a merger or JV. The parent cos will agree what branding the JV will use - they probably have already.

Using different brands by one company can in some cases be confusing and I see no benefit in retaining both brands post merger. Why pay Richard Branson money to use the Virgin brand when there will be another choice?

Perhaps there may even be a new brand altogether.

Well, I’m going on previous examples. Vodafone/ Ziggo was LG’s first foray into this kind of thing, two strong brands, that they decided to keep.

Virgin is still an iconic sought after brand, and although we have to grease Ricardos palm, I don’t see them ditching it............................unless of course, ditching Richards money is one of the synergy savings identified? Who knows?

[Horizon]

Branson's brand was popular, but after recent events I'm not so sure now.

He's not been in the public eye much these recent years and he is getting elderly. But we we did see him a lot the other week, when he was seeking taxpayers cash to bail out his airline, even though he is a billionaire and a tax exile to boot.

I think that one move has done enormous damage to the brand and the JV may (or may not) wish to distance itself from all things related to Branson.