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U.K. incumbent could look to work with its German peer on boosting TV offering, chairman suggests.
There was much talk in the industry on Monday of BT’s relationship with Deutsche Telekom, after a media report showed that the U.K. incumbent is keen to work more closely with its German peer and future shareholder.
BT is considering various joint ventures with Deutsche Telekom following the completion of its takeover of mobile operator EE, the Financial Times quoted BT chairman Michael Rake as saying.
Such ventures could include strategic partnerships and media deals that would boost BT’s TV offering, the paper said.
Industry watchers are keeping a close eye on the relationship between BT and Deutsche Telekom because the German telco will become a BT shareholder when the EE deal closes. As it stands Deutsche Telekom holds 50% of EE. It will take a stake of around 12% in BT as a result of the sale of the mobile operator, making it BT’s largest single shareholder.
At a time of significant consolidation in the telco space – admittedly most of which is in-market rather than cross-border – Deutsche Telekom’s interest in BT is naturally attracting a lot of interest.
The Financial Times also questioned Rake about the possibility of BT making a bid for U.K. broadcaster Channel 4, following rumours to that effect.
Rake did not rule out such a move, noting that BT is monitoring available options and considers itself to be in a strong position to continue to do so.
The acquisition of EE is expected to close this quarter.
