&c1=usa&c2=(none)&c3=MediaGuardian&c4=Media,Digital+media,Internet,Virgin+and+Richard+Branson+(Media)&c5=&c6=Amy+Vickers&c7=2001_06_06){kind=small}
- MediaGuardian,
- Wednesday June 6, 2001
Virgin Net's owners, Virgin Group and NTL, have appointed Lehman Brothers to handle the sale of the unwanted ISP.
The move is the final salvo from NTL in the long-drawn out battle to resolve the Virgin Net shareholding structure.
Virgin has wanted to get out of the ISP market for the past two years, and had been expected to sell its 51% stake to NTL, which holds a 49% stake in Virgin Net.
A deal that was close to being sealed last October had involved NTL paying around £100m for control of Virgin Net, of which 10% was to have been in cash and the rest in NTL common stock.
The Virgin Group was to have retained the portal assets of Virgin Net and rebranded the website as an entertainment portal.
However, neither side managed to clinch a deal and the sale was shelved in March.
Virgin Net claims a top five position among UK ISPs with a claimed 600,000 users, but it is a difficult time to sell an ISP.
Tiscali is the only firm still on the acquisition trail, but, after having bought Libertysurf, World Online and LineOne, it is said the Italian internet company has now reached its desired UK position.
It is thought an outright sale of Virgin Net, complete with entertainment portal, would fetch a reduced price of around £50m. The sale of LineOne to Tiscali resulted in a cash and shares deal of just £62.5m.
Related stories01.12.2000: Virgin Net to make 30 staff redundant
05.10.2000:Virgin Net parts company with NTL
