AOL UK Holds Onto Content Division
Posted: 02nd Aug, 2006 By: MarkJ
Concerns over the potential sale of AOL UK's ISP business have arisen after the provider signalled that it would hold onto the content side of its operations. In other words, anybody buying the Internet access arm would still need to redirect users onto its portal:
According to a report in Tuesday's Guardian, AOL UK's strategy will deter bidders such as BSkyB and Orange from buying its subscriber base because those companies have their own ambitions as content providers.
However, sources close to the situation insist that AOL UK had always maintained it would look for "partnerships to improve the current business situation", and had long stated it was "in the market to be a long-term portal business", rather than seeking a quick sale.
Describing AOL as an "expert" in content provision, insiders suggested that reports that this might deter prospective buyers were little more than an attempt by certain bidders to "jockey for position".
Sky, Orange and the Carphone Warehouse are still reported to be involved in the auction Citibank is conducting. More @ ZDNet.
According to a report in Tuesday's Guardian, AOL UK's strategy will deter bidders such as BSkyB and Orange from buying its subscriber base because those companies have their own ambitions as content providers.
However, sources close to the situation insist that AOL UK had always maintained it would look for "partnerships to improve the current business situation", and had long stated it was "in the market to be a long-term portal business", rather than seeking a quick sale.
Describing AOL as an "expert" in content provision, insiders suggested that reports that this might deter prospective buyers were little more than an attempt by certain bidders to "jockey for position".
Sky, Orange and the Carphone Warehouse are still reported to be involved in the auction Citibank is conducting. More @ ZDNet.
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