Last week we predicted that Tiscali UK would acquire HomeChoice and now the companies have said they will enter into an all-stock merger. Tiscali will acquire 100 percent of Video Networks, which owns the HomeChoice service, while Video Networks shareholders will get an 11.5 percent stake in Tiscali. That stake could grow to 20 percent if "certain performance" targets are reached, and after three years VNL can sell the stake, or Tiscali can buy it back. HomeChoice consists of a broadband service, payTV channels, VOD and call packages over a broadband line. The company had just 45,000 paying subscribers, despite its ability to handle as many as 2.4 million.
For more on Tiscali's acquisition of HomeChoice:
- take a look at this article from LightReading