Sky and Tiscali in talks?

It's rumoured that Sky is persuing Tiscali and they are in talks.

Tiscali have "on the market" for a while and though they purchased Home Choice for their video delivery capability, competition in broadband is constantly increasing and margins are decreasing.

Sky have always wanted to deliver video over their infrastructure, so Sky buying Tiscali could be a good deal for them.

If the deal goes through it's likely Easynet will take-over Tiscali's infrastructure which may not be good news for Tiscali staff.

Unfortunately this trend is going to continue in the UK and there are only going to be a few big telco/broadband players left in the market.