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Sky backing Liberty fibre net to take on BT?

September 2, 2019

Sky is in talks over a potential investment in a new full fibre network to be built by Liberty Global that could substantially raise pressure on BT in the UK broadband market, according to FT.

Liberty Global appointed LionTree, the investment bank, to find partners for a new joint venture company that will build a full fibre network to millions of homes outside the most populated areas of the UK. It formally registered the group as Liberty Fibre Ltd with Companies House last week.

Virgin Media, the UK’s second-largest telco, and which is owned by Liberty Global, would be the anchor tenant for the business. In recent weeks, Sky has also opened talks over participating in the joint venture both as an investor and a customer, according to three people with direct knowledge of the negotiations.

The discussions between Liberty Global and Sky over the new network are said to be at an early stage.

Sky and Liberty Global have thus far both declined to comment.

Sky is in separate talks over a wholesale deal to use Virgin Media’s existing cable network which covers half the country.

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