Microsoft loses £1.58bn in Telewest deal
Published: 29 May 2003 08:38 BST
Microsoft has sold its interest in Telewest for a fraction of what the software giant poured into the UK phone, cable TV and Internet service provider.
IDT bought the software maker's stake for $5m (£3m), a Microsoft spokesman said on Wednesday. IDT is a telephone company that resells service from major providers such as WorldCom, Cable & Wireless and Qwest Communications International.
Microsoft purchased a 23 percent share of Telewest in 2000 in exchange for stock valued at $2.6bn (£1.59bn), according to the Microsoft spokesman. The company sold the stake after an "ongoing and regular analysis and realignment of investments," he said.
Telewest provides television, telephone and Internet services to 1.74 million homes in the UK, plus voice and data telecommunications to 72,700 businesses. A Telewest spokesman could not be reached on Wednesday for comment.
The Telewest investment was among several that Microsoft made to gain a foothold in the high-speed communications market.
Other Microsoft investments include a $300m stake in Dutch cable company United Pan-Europe Communications and a $500m investment in cable operator NTL. The company also invested in Global Crossing, Liberty Media, Canadian cable operator Rogers Communications, Portugal Telecom and a Brazilian cable company.
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