Sky-Vodafone merger worth 2 billion in New Zealand

9 years ago - Published in Finance, Fundamental Analysis

Important convergences in the world of media and TLC: Vodafone New Zealand and Sky Network Television today announced the merger of the two groups by the value of 3.44 billion New Zealand dollars, amounting to over 2.1 billion euro.

Sky will acquire Vodavone NZ, second group of telecommunications in the country, in part by buying shares and partly cash (1.25 billion New Zealand dollars). Sky then take control (51%) of the companies that merged.
The merger combines the first brand of mobile phones with over 2.35 million customers and the leader of the tv for a fee, with 830 thousand subscribers.

The goal is to deal as best as possible the fierce competition, first of all Netflix. Vodafone NZ has suffered losses during the year 2014-2015 of 121 million New Zealand dollars but has the highest number of mobile connections in the country, making it an ideal distributor for the Sky content.