Virgin Media and O2 confirm merger to create a £31billion media and telecoms giant

VIRGIN Media and O2 have today confirmed they will merge to create a £31billion media and telecoms giant.

Their parent firms made the announcement this morning and “could not be more excited about the pairing”.

It comes after O2’s parent company Telefónica confirmed on Monday that the two firms were in talks to merge.

The deal brings together O2’s 34million customers on its mobile network with Virgin’s 5.3million broadband, pay-TV and mobile users.

O2 – which also provides the network for GiffGaff, Tesco Mobile and Sky Mobile – is the UK’s largest phone company.

The deal will also see all 14,000 Virgin Media employees and 6,700 O2 staff in the UK work under the same umbrella company.

The Sun has asked O2 and Virgin Media what the merger means for customers in terms of bills, products and service, but we haven’t yet heard back yet.

The deal, which is subject to regulatory approvals, is expected to close in the middle of 2021.

Mike Fries, chief executive officer of Virgin Media owner Liberty Global, said: “We couldn’t be more excited about this combination.

“Virgin Media has redefined broadband and entertainment in the UK with lightning fast speeds and the most innovative video platform.

“And O2 is widely recognised as the most reliable and admired mobile operator in the UK, always putting the customer first.”

Jose Maria Alvarez-Pallete, chief executive officer of O2 owner Telefonica, said: “Combining O2’s number one mobile business with Virgin Media’s superfast broadband network and entertainment services will be a game-changer in the UK, at a time when demand for connectivity has never been greater or more critical.

“We are creating a strong competitor with significant scale and financial strength to invest in UK digital infrastructure and give millions of consumer, business and public sector customers more choice and value.”

Telefónica has been looking for a buyer for O2 since 2016, when a planned take over by CK Hutchinson, the owner of mobile network provider Three, fell through after being blocked by European competition regulators.

The mobile network side of Virgin Media was due to be taken over by Vodafone later this year but it’s not yet clear if this will go ahead following this latest deal.

More to follow…

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