Telefonica SA, Spain’s número uno telecoms company, has agreed to shell out a massive £17.7 billion ($31.5 bn, €21.15bn) for U.K. mobile-phone operator O2, making it the largest acquisition in the European telecommunications industry for half a decade.
As the world’s fifth-largest telecoms firm by market value, Telefonica’s deep, deep pockets enabled them to offer 200 pence per share in cash (a 22 percent premium to O2’s closing share price on Friday) sending the company’s shares soaring 24 percent to 203-1/4 pence by 1017 a.m today.
With the acquisition of O2, Telefonica will scoop up 25 million customers from the U.K., Germany and Ireland – bringing their total count to around 170 million – and allow the company to break into the fiercely-competitive European market.
Management execs at the two European telecommunications operators were positively purring at news of the deal.
“This transaction brings together two companies which are growing strongly with highly complementary geographical activities,” commented Peter Erskine, chief executive of O2.
Telefonica Chairman Cesar Alierta added, “O2’s integration in the Telefonica group will enhance our growth profile, it will allow us to gain economies of scale, it will open the group to two of the largest European markets with a sizeable critical mass and it will balance our exposure across business and regions.”
O2 was spun off from the BT Group in November 2001 and currently employs 5,000 people.
Starting off with a stock market value of 6.3 billion pounds, the company has reported a profit for the last two years.
Earlier this year Dutch telecommunications operator KPN and Germany’s Deutsche Telekom were sniffing about the company with an eye to a possible purchase, but no deal was forthcoming,
Released today in Korea, the land where they get all the cool gadgets first, Samsung’s new SCH V700 handset has the honour of being the first PMP (Portable Media Player) phone in the world.
The V700 comes in Samsung’s favoured clamshell design with the added twist of a tilting display which lets users rotate the screen 90 degrees to take advantage of a wider display (it looks a bit like ET to us in this position, but maybe we’ve been overdoing it a bit recently.)
We’re impressed with the onboard TV out port which could prive a great way of sharing your photos with chums.
The portable game business will be worth a thumping great $2.3 billion in four years, according to a report released today by research firm, The Yankee Group.
With the line between wireless handsets and portable CE devices continuing to blur, the Yankee Group used data from both their Video Capable Device Survey and the Mobile User Survey to come up with what they describe as “the most comprehensive view into the portable device market.”
Mobile phone giants Nokia have announced three new phone models aimed at the “style-conscious” market.
Desperately described as a phone for “trend-setting men and women who enjoy being the centre of attention,” the highly distinctive 7380 looks like it’s come from the same bonkers design studio as the
Employing a sliding keypad, the Nokia 7370 comes with a 2-inch QVGA colour screen (320 x 240 pixels), stereo speakers with 3D sound effects and a 1.3 megapixel camera (8x zoom) onboard.
Nokia 7360
Mobile phone heavyweights Motorola, have reported bumper earnings for the third quarter, with profits more than tripling after record sales.
Handsets were up 41% year-on-year with quarterly sales soaring 26% to a new high of $9.42bn, from $7.5bn for the same period in 2004.
“We are very excited about our third quarter results and overall performance year-to-date… Excluding re-organisation charges, all four of Motorola’s businesses grew profitably during the quarter,” said a deeply chuffed Zander.
The super-thin triband LG U880 will be offered in black, silver and pink with its clamshell design incorporating a 1.3 megapixel camera and expandable internal memory of 80 MB.
The first mass-market 3G Nokia handset to go on sale in the UK, the 6280 has a sliding keyboard and built-in 2 megapixel camera with 8x digital zoom and integrated flash.
A poseur’s delight, the Motorola RAZR V3x is the high-fashion phone for the “Look at me!” crowd, with its slinky, slim-line form supporting a full range of 3G services.
Destined to be 3’s first two megapixel phone when it becomes available at the end of October, the Nokia N70 is based on the hugely successful Nokia 6680 and offers video calling, integrated flash, a built-in FM tuner, Bluetooth and support for Visual Radio.
Samsung Electronics have launched the hard-disk-based SPH-V7900 mobile phone, sporting a record-breaking built-in 3GB hard disk drive.
Naturally, there’s an MP3/video player onboard, capable of playing several formats including Mpeg4/H.264 video and Mpeg4 AAC, AAC+ and MP3 audio.
Their SGH-I300 – scheduled for a European November release – will run on the Microsoft’s Windows Mobile operating system and also offer a 3GB hard disk drive offering plug-and-play support (so files can be dragged over from your home PC).
According to the latest figures from the International Telecommunication Union (ITU) in Geneva, Italy can now boast the highest mobile penetration rate in Europe, with mobile-mad Italians notching up 109.42 phones per 100 inhabitants.
With over four million UMTS users, Italians are also leading the way in 3G take up, with the ITU reporting that the country is the most prominent user of 3G services in Europe.
Mind you, it could be argued that Luxembourg’s high mobile ownership is equally skewed due to their nationals living in neighbouring countries needing a second handset for use within its borders.
Sony Ericsson has today announced the launch of their first 3G (UMTS) tri-band GPRS Walkman phone, the W900.
The phone comes stuffed with multimedia widgets, with a built-in FM radio and 2 megapixel auto-focus flash camera offering 8x digital zoom and the ability to record and playback video at a nippy 30fps.
In line with its Walkman branding, the phone has dedicated music controls, letting users scroll through play lists, artists or individual songs, and a bundled LCD remote control.
The W900 UMTS Walkman phone will be commercially available in black or white finished by the end of Q4 2005 in two versions:
Call us cynical if you like, but when we get a press announcement trumpeting some kind of ‘world first’ or another from someone we’ve never heard of, our eyebrows tend to arc skywards.
It is significant that content is breaking on mobiles before it’s in the shops and we’ve no doubt that mobiles will continue to play a greater part in the distribution of music and video, but we can’t really get excited about someone (even if they have got dazzling teeth) releasing a few snippets of a DVD for mobiles and then expecting the Guinness Book of Records to be calling them up.
In fact, we’re so unimpressed that we can’t even be bothered to give you the name of the video, but you can find it somewhere on Vodafone’s Dutch Live TV website, or just click around chirpy Frans’ website.