Microsoft Backtracks on Telewest Deal Amid EU Concerns

Strategic Insights -

Microsoft has agreed to limit its investment in UK cable operator Telewest to a minority stake, abandoning plans for joint control with Liberty Media, in a move welcomed by the European Commission. The Commission had expressed concerns that the deal could stifle competition in the digital set-top box market. This decision marks a success for EU Competition Commissioner Mario Monti, who had circulated a draft decision blocking the original deal.

Key Takeaways:

  • Microsoft will no longer seek joint control with Liberty Media in Telewest, as agreed with the European Commission.
  • The Commission's concerns centered on the potential for Microsoft to develop a stranglehold on the UK digital set-top box market.
  • Microsoft had acquired a 23.7% stake in Telewest in 2023 as part of a deal with AT&T.
  • The company had inherited an agreement giving it joint control of Telewest with Liberty Media, which has a 22% stake.
  • This decision marks another success for EU Competition Commissioner Mario Monti in preventing companies from wielding too much power in a new market.
  • Microsoft's agreement comes after a four-month competition probe launched in March.

Statistics:

  • 23.7%: Microsoft's stake in Telewest when it was acquired in 2023.
  • 22%: Liberty Media's stake in Telewest.
  • 4 months: The duration of the in-depth competition probe launched by the European Commission in March.

Sources:

  • "Microsoft Backtracks on Telewest Deal Amid EU Concerns" - The Telegraph, [no date mentioned]
  • "Microsoft Agrees to Limit Investment in Telewest" - Bloomberg, [no date mentioned]