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Demon has been placed in the shop window by Thus
Tuesday 24 October 2006 11:37:00 by Andrew Ferguson

It looks like Thus the company who bought Demon from Cliff Standford in 1998 has put the consumer side of Demon up for sale. Details of the sale can be read over at The Telegraph. Valuations are suggesting a price of £15,000,000 to £20,000,000.

Demon has always had a strong mix of consumer customers and small/medium business customers, it would appear that only the consumer arm is up for sale, which amounts to around 50,000 broadband customers. Not everything has been rosy at Demon since profits fell 15% last year, which is attributed to many customers shifting from dial-up to broadband.

A lot of Demon home customers have probably joined because they knew the company supplied their companies connection, and they found it reliable, so how loyal these same customers will be after a sale is unclear. This is always a worry for companies buying blocks of customers, how many will stay and how many will leave. As for which companies will buy the consumer service, this is harder to know since it seems to be that what is up for sale is 50,000 subscribers, rather than access to staff with expertise in video over broadband or LLU provisioning. At around £400 per subscriber if bought for £20 million it is perhaps not the bargain of the century either.

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