Dixons Abandons Plans to Sell Freeserve Stake

Strategic Insights

Jun 25, 2000 — 1 min read

Dixons, a major UK retail group, has reportedly dropped plans to sell its $5.75 billion stake in Freeserve, the UK's largest Internet service provider (ISP). The decision follows discussions with T-Online, a German ISP that has been on an acquisition trail. Freeserve has been a key player in the UK ISP market, securing major content deals and boasting a significant subscriber base.

Key Takeaways:

Dixons has refused comment on the reports, citing market speculation.
T-Online had confirmed its interest in acquiring Freeserve, but discussions have now fallen through.
The deal collapse is attributed to the general volatility in IT, media, and telecommunications shares in recent weeks.
Dixons has not ruled out a partial sale of Freeserve to a strategic partner.
Talks have been held with NTL, a UK telecommunications carrier, about a possible linkup.
Freeserve has a massive UK subscriber/user base and has been a key mover and shaker in the UK ISP scene.

Statistics:

Dixons' stake in Freeserve: $5.75 billion.
Number of Freeserve subscribers: Not specified.
T-Online's cash investment fund for acquisitions: Not specified.
Freeserve's main claim to fame: Massive UK subscriber/user base and key role in UK ISP content deals.

Sources:

"Deal to Sell Dixons' Stake in Freeserve Collapses" (The London Times, June 26, 2000)
Freeserve's Web site (http://www.freeserve.net )
Reported by Newsbytes.com (http://www.newsbytes.com )
Deutsche Telekom Press Office (+49-228-1814-9494)
Stephen Pang, Freeserve (+44-1442-882530) WIRES ONLINE, BUSINESS, TELECOM/FREESERVE/PHOTO

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