Yesterday, Sky and Vodafone announced plans to merge the two companies. Sky will buy Vodafone, and Vodafone’s parent company will become a 51% shareholder in the new company, which is yet to be named – although Skoda is already taken. The two brand identities will continue.
It’s probably good news for customers of either or both companies, with the principals promising more content across more devices.
Both companies have achieved as much market penetration in NZ as they’re likely to as standalone companies, and Sky has been under pressure for some time over its offer, pricing and less than successful ventures into online activity.
Sky will pay $3.4 billion for Vodafone ($1.3 billion cash, plus new Sky shares). The deal requires approval of the Commerce Commission, and the companies’ shareholders, neither of which are likely to prove problematic.
The merger presentation is below: