Telstra’s acquisition of Sky and O2 has driven the telco’s market cap up to $1 billion.
Telstra CEO David Thodey said the deal is a testament to the value of telcos, and that he and his team have built a network that is the envy of its competitors.
“We believe the combination of the combined capabilities of our two business models will give Telstra a leading position in the global telecommunications market, which we see as the next logical step in our strategy to ensure that every Australian can continue to enjoy high-speed connectivity,” he said in a statement.
The acquisition will boost Telstras market cap by $1,500 million and will help it expand into a more broadband-centric business.
It is the largest deal in Telstra history.
Telcos are in a state of upheaval after the company’s board approved the sale of the Australian telco to Telstra, and it is the latest example of the company struggling with the changing telecommunications landscape.
Telco stocks tumbled in the wake of the sale.
The stock market has been volatile in recent months, with a spate of big-ticket deals including the takeover of Optus and the acquisition of Virgin Media all falling through.
Telerik has also seen its share price fall more than 70 per cent this year, after it posted a loss of more than $600 million.