More details have been announced on the proposed Virgin Mobile/NTL merger. Apparently NTL will be buying Virgin Mobile, but will pay to adopt the Virgin brand on all of its services (NTL's ISP service is already branded Virgin.net). Richard Branson will be left with a 14% share in the merged company, making him the largest shareholder. NTL aim to attract customers away from BSkyB by extending the Virgin brand into TV.

 

So the hallowed Virgin brand will find itself wrapped around a sprawling communications company that, together with Telewest that it took over a few months ago, defaulted on a $26 billion debt in 2003, and which has an atrocious customer service and reliability record.  Er, good luck Richard!

 

[Source: Bloomberg]