Tiscali and Sky in channel tie-up
The Times reports that BSkyB is in talks with Tiscali about running their basic channels (Sky One, Sky News etc.) over the HomeChoice television service. These are the same channels withdrawn from Virgin Media at the end of February following a contractual dispute between BSkyB and Virgin Media.
The news follows the rejection of an offer from Sky to Virgin Media to split the difference between the bids at last negotiation. Tiscali are reported to be looking at a price-per-subscriber higher than that of Virgin Media's last offer. Tiscali/HomeChoice reportedly have 1.48 million subscribers and Sky are keen to increase coverage to as many homes as possible. Tiscali are also in talks, at a preliminary stage, with Pipex over a possible acquisition of their voice and broadband division. This could see the potential to increase Tiscali's Television roll out to a larger audience.