Telewest And Flextech Merger Cleared By DTI

The Department of Trade and Industry (DTI) has decided not to refer to the Competition Commission the £2.3 billion merger between cable company Telewest Communications and pay-TV channel producer Flextech (see Telewest And Flextech Agree Terms Of £2.26bn Merger).

The deal will create a combined media group valued at more than £12 billion. The companies describe the merged operation as “an integrated communications and media group focused on delivering a range of voice, video and interactive services across multiple platforms, underpinned by branded digital media content.”

Separately, both Telewest and Flextech have this morning announced new deals of their own. Telewest has teamed up with management and technology consultancy, Andersen Consulting, to launch a new company that will develop interactive broadband services. The new business will be jointly owned by Andersen Consulting and Telewest.

The new company’s first product, due for launch later this month, will be a full video on demand service. Other services will be developed to run across broadband channels which will be developed by cable companies over the coming years and will include interactive TV and advertising, music pay-per-view and electronic banking.

Commenting on the launch, Telewest’s chief executive Tony Illsley says: “This joint venture will unleash the full potential of broadband service for Telewest and other operators.”

Meanwhile, Flextech Interactive has acquired the controlling stake in rock and pop concert ticket agency, Way Ahead. The pay-TV group’s internet division is paying £7.2 million for the 77.5% holding and will build Way Ahead’s ticket sales business into its existing online entertainment guide, SceneOne.

Department of Trade and Industry: 020 7215 5600 Telewest Communications: 01483 750 900 Flextech: 020 7299 5000