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| Version 2 | Version 3 |
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| O2 and Virgin Media in talks to merge | O2 and Virgin Media in talks to merge |
| (about 1 hour later) | |
| Mobile operator O2 may be set to merge with broadband giant Virgin Media to create one of the country's largest entertainment and telecoms firms. | Mobile operator O2 may be set to merge with broadband giant Virgin Media to create one of the country's largest entertainment and telecoms firms. |
| A tie-up between two major players in Britain's telecoms and media sector would create a major rival to BT. | A tie-up between two major players in Britain's telecoms and media sector would create a major rival to BT. |
| Spanish firm Telefonica, which owns O2, confirmed that it was in talks with Virgin-owner Liberty Global. | Spanish firm Telefonica, which owns O2, confirmed that it was in talks with Virgin-owner Liberty Global. |
| The company stressed that the negotiations were ongoing and there was no guarantee they would reach a deal. | The company stressed that the negotiations were ongoing and there was no guarantee they would reach a deal. |
| "The process initiated by both parties is in a negotiation phase, not being able to guarantee, to this date, neither the precise terms nor the probability of its success," Telefonica said. | |
| O2, which provides the network for Tesco Mobile, Giffgaff and Sky Mobile, is the UK's largest phone company with around 34 million users. | O2, which provides the network for Tesco Mobile, Giffgaff and Sky Mobile, is the UK's largest phone company with around 34 million users. |
| Virgin has about six million broadband and cable TV customers and another three million mobile users. | Virgin has about six million broadband and cable TV customers and another three million mobile users. |
| A tie-up between the two would increase pressure on BT, which owns the UK's second-largest mobile network EE. | A tie-up between the two would increase pressure on BT, which owns the UK's second-largest mobile network EE. |
| BT has 28 million mobile, TV and broadband customers across the country. It also provides services to a million businesses. | BT has 28 million mobile, TV and broadband customers across the country. It also provides services to a million businesses. |
| Telefonica tried to sell O2 to the owner of Three, CK Hutchison, for £10.3bn in 2015. However, that deal was blocked by the European Commission over concerns that it would have left just three major mobile phone operators in the UK. | |
| But telecoms analyst Paolo Pescatore, who works for PP Foresight, does not think a deal between O2 and Virgin would face similar hurdles. | |
| He said Virgin Media mainly provided services through cable, such as broadband and TV, whereas O2 focuses on mobile. | |
| "It's very much complementary," he said. | |
| Describing what a tie-up between the two companies could look like, Mr Pescatore said: "If you're an O2 customer, you'll be able to be able to buy more than just mobile. | |
| "If you're a Virgin Media customer, the vision - ultimately - will be that you can buy everything in one place with one bill, which isn't the case today." | |
| Telefonica said the talks were in "a negotiation phase", while Virgin Media refused to comment. |