News
Pay TV operator confirms discussions with mobile operator; trading in shares halted.
Sky and Vodafone are holding talks that could lead to a merger of their operations in New Zealand.
Following media speculation on the subject, Sky Network Television on Wednesday confirmed that discussions "regarding a potential transaction involving a combination of the businesses of Sky and Vodafone New Zealand" are taking place.
"The discussions are ongoing and incomplete and may not result in a transaction occurring," Sky noted.
The New Zealand Stock Exchange had halted trading in Sky’s shares pending a further announcement.
Sky New Zealand, which is not part of the European satellite TV group of the same name, provides a range of pay TV services and channels. It already works with Vodafone to add fixed broadband into the mix, offering the telco’s VDSL service to its customers.
Vodafone is New Zealand’s largest mobile operator by subscribers, with 2.4 million customers compared with Spark’s 2.2 million. However, the incumbent edges it in the fixed line space, its broadband base reaching 675,000 at the end of last year to Vodafone’s 413,000.
There has been speculation in the local press in recent months that Vodafone is considering selling out of New Zealand. Sky has been named as a possible buyer, as has Australia’s TPG Telecom, which has also been linked with New Zealand’s smallest mobile operator 2degrees.
