December 2, 2016
Vodafone is reportedly in takeover talks with Kabel Deutschland (KDG), the biggest cable TV company in Germany.
KDG, which has 11 million customers in Germany, is believed to be worth around €2.8 billion.
The company recently announced a second quarter revenue increase of 15.4% to €339.3 million, although some of this was due to the acquisition of Orion Cable Group.
KDG would fit well alongside Vodafone Germany’s fixed line ser vice, Arcor, which controls around 14% of the country’s broadband market.
Telecoms companies like to control cable operators because it allows them to have direct lines to consumer’s homes, rather than having to cover the cost of laying their own lines or renting lines for the last mile.
KDG’s owner, private equity firm Providence, said it is open to any offer that meets its requirements.
Vodafone declined to comment on the report.