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Sky balks at asking price for Tiscali broadband

Exclusive talks between BSkyB and Tiscali over the sale of Tiscali’s UK arm have hit a stumbling block.

Although talks have not ended, it has been revealed that Sky is not willing to pay the price that Tiscali is demanding.  It is thought that Sky was initially looking at a bid of around £450 million, but now it appears that Sky is not even willing to pay that much.

Other potential bidders, such as BT have already walked away from the auction earlier this year.  

Tiscali has 1.8 million customers in the UK, but has struggled to grow due to increasing competition in the UK broadband market.