NTL, Telewest differ over Flextech future

Potential merger partners NTL and Telewest are split over what to do with Telewest's content division, Flextech, according to a report in today's Media Guardian.

The paper reports that Telewest is keen to keep Flextech, despite reports that the company was considering selling it off before an expected merger with Britain's biggest cable operator, NTL. That view is bolstered by Telewest's acquisition of shopping channel operator Sit-Up TV, which was financed by a bank credit facility entered into by Flextech earlier this month.

The Guardian reports that while NTL CEO Simon Duffy says he is "somewhat sceptical of the alleged merits of vertical integration between content and distribution," Telewest's acting CEO Barry Elson says that he believes "content becomes more valuable in the future and not less," adding that Telewest likes "being in both businesses."