Sky Network confirms tie-up talks with Vodafone NZ
WELLINGTON – Sky Network Ltd on Wednesday said it is in discussions with Vodafone Group Plc about a possible merger of their New Zealand businesses.
The talks regarded a potential transaction involving a combination of the businesses of Sky and Vodafone New Zealand, it said in a release to the New Zealand stock exchange.
The discussions were “ongoing and incomplete and may not result in a transaction occurring”, it added.
Sky provides pay television and free-to-air television services in New Zealand while Vodafone New Zealand provides broadband, fixed-line and mobile phone services. The two companies already work together on some digital online offerings and Vodafone NZ offers Sky content as part of its packages.
Vodafone New Zealand declined to comment on any possible transaction while Sky said it would not comment further.
Advances in technology and competition meant that Sky was under pressure to retain subscribers, Hamilton Hindin Green broker Grant Williamson said.
“I think investors are probably realizing that Sky TV has to do something,” he said, adding it was too soon to speculate on what sort of transaction might result from the talks. Sky Network shares are on a trading halt pending more detail. -Reuters