On AOL UK acquisition, Charles Dunstone, CEO of CPW: “The acquisition of AOL’s UK Internet access business is transformational for our broadband business. This deal gives us significant scale to complement the rapid organic growth of our free broadband proposition. In addition, the joint development of AOL’s already successful audience platform will bring us new advertising and content revenues in a proven and low risk manner.”
However, the business transformation for CPW came in one day! On 12th Vodafone terminated its long term (17 years old!) exclusive deal with CPW to sell mobile contracts. Then on Friday, 13th Oct, Orange increased the pressure by announcing plans to terminate its long term contracts.
For both the company, CPW has become more of a threat after clinching a deal to buy AOL UK business. CPW’s share fell by 12% and 450 million GBP has been wiped out…oops!
However, considering the far reach of CPW, is it a wise decision for Vodafone? Phone4U is popular amongst younger group, is it next the CPW? or will CPW split its operations and acquire Phone4U to further strenghten its position
