AOL linked to sale of UK internet arm
One of the longest-running providers of internet services in the UK was today thought to be looking for a buyer for the business.
AOL, which is owned by US media giant Time Warner, is said to have hired investment bank Citigroup to gauge interest in its French, German and British arms.
AOL is the UK’s third largest internet service provider after BT and the merged cable companies NTL and Telewest. It has 2.2 million customers with more than one million using broadband.
Launched in the UK in 1996 – before Freeserve – it gave many British consumers their first taste of the internet.
As part of a strategic review of the company’s European operations, it is understood that Citigroup has approached a number of communications firms about the sale of AOL’s UK business or the possibility of a partnership.
AOL could not comment on the report in the Guardian while Time Warner and Citigroup were not immediately available.
AOL Europe is split into an access division which deals with getting online and an audience unit dealing with online content and advertising.
The company could be looking to offload just one of the businesses.
The move comes as competition warms up in the internet market after Carphone Warehouse’s Talk Talk operation decided to offer free broadband as part of a bundle of services. Other ISPs are being forced to follow suit or lose customers.
This week, Orange offered a free broadband package for customers who spend more than £30 (€44) a month while in the summer BSkyB is expected to offer the free service to satellite customers.
BT, the UK’s largest ISP, is also looking at ways to make its packages more attractive.
An estimated 50,000 UK consumers take out high-speed internet every week.
