United News & Media and BTopenworld have today confirmed that they are to seek a new owner for LineOne, their jointly-owned portal and internet service provider. The service, which was founded in 1997, has been a successful project, but is now superfluous to the refocusing plans of its two remaining owners.
United paid £10m to purchase a 33% stake in the ISP in 1998, whose original founders were BT and News International. One of the top five ISP’s in the UK with more than 1.4m registered members, it shifted from a subscription to a free service in 1999 in order to keep up with competition within the market.
After News International pulled out of the venture to concentrate on its own internet plans, LineOne’s future was secured with a cash injection of £12m from its two remaining owners. United and BTopenworld said today that they were proud of their joint venture’s achievements but that it no longer fitted in with either company’s plans.
United News & Media has been restructuring its business since the sell-off of its television interests to Granada Media earlier this year and of Express Newspapers to Northern & Shell. Its future plan is to change its name to United Business Media and concentrate on its core businesses, CMP and PR Newswire.
