Spain’s leading cable operator, Ono, has been bought by British telecom giant Vodafone for $10 billion.
Vodafone, one of Britain’s leading telecom groups has acquired the Spanish private equity owned cable operator, Ono, for $10 billion. This comes after the telecom company sold its American shares last year for a record $130 billion to Verizon Communications.
Ono, Spain’s largest cable TV operator and Internet provider, reportedly serves about 1.9 million people. The acquisition of Ono by the British telecom group is its second to date, when considering its European purchases, after the deal it struck last year with the German company Kabel Deutschland.
Vodafone’s CEO, Vittorio Colao, has reportedly called the purchase “an attractive deal”.
The Spanish cable company only recently announced its yearly financial outlook, which revealed the operator revenues in 2013 totaled up to €1,598 million. Ono also reportedly made investments last year amounting to €264 million in total as an incentive to develop its high speed internet services and in setting up the TiVo customer base in Spain. The results were hailed by Rosalia Portela, the CEO of Ono.
Following its acquirement of Ono, Vodafone has been on the receiving end of several predictions by financial experts and analysts alike regarding its conquest in the UK’s own telecommunications and television provider sectors, with rumours surrounding the likes of BskyB and Talk Talk as being future acquisitions.
Acquisitions and mergers by telecom companies have been on the rise in the global financial community. American mobile service provider AT&T only recently banished rumours of its plans to buy out Vodafone’s American operations. The Indian Tata Group’s telecommunication subsidiary, Tata Communications, has also been in the spotlight recently in Indian financial media for a possible proposed sell-out of the subsidiary.
— Dipika Rangasami, Editor (Business)
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