RealTime IT News

U.K.'s Yes TV Attracts Hollywood Cash

U.K. pay-TV company Yes Television is to get cash injections from two Hollywood-based studios.

Yes, which specialises in delivering video on demand via conventional copper telephone lines, has confirmed that Warner Brothers and Walt Disney's Buena Vista will respectively take a 10 per cent and nine per cent stake in the company prior to its London based initial public offering (IPO) this month.

The company expects to sell 81 million shares at between 225 pence and 275 pence each during the flotation and has the option to sell a further 12.15 million shares if there is demand. The sell off is expected to value the company at around £670 million.

Yes has played down the risk of its imminent IPO, following the dramatic fall in lastminute.com's share price which dropped below issue price at the beginning of open trading last month.

"We're not a dot com," said Thomas Kressner, chief executive of Yes. "We are very comfortable with our pricing."

Currently, Yes only has around 300 viewers on a pilot scheme but is planning a national launch of a service with BT in the autumn when the telco switches on its ADSL service that allows high-speed transmission over copper lines. A further trial with 400 homes will begin in London at the end of this month.

The share offer opens from 3 April for institutions and 4 April for retail investors. Conditional dealing is slated to begin on 17 April, and the minimum retail application is £1000.

from VNUnet.com.