Yes TV: 'No' to flotation plans

The technology carnage on the world's stock markets has caused yet another casualty, this time even before the firm managed to get a share listing.

Yes TV, the Cardiff-based video-on-demand operator, has decided to abandon its second attempt to float on the stock market, after London's Techmark index plunged a record 8.7% on Friday alone.

The decision came at the last minute, with conditional trading set to start on Monday. The company now hopes to attract "strategic investment partners".

A first attempt to float shares at a range of 225 to 275 pence had been abandoned in April, but now even the new flotation price of 175p did not appear to be sustainable.

Yes TV would have been part of the Techmark index, London's listing of stock from high-technology companies.

Cash reserves

The firm's head of marketing, Steve Garvey, said: "In the light of adverse market conditions, notably in the technology sector, and following approaches from a number of potential strategic investors, the directors of Yes Television ... have decided to withdraw the global offer."

The firm says it has enough cash reserves - more than £40m - to sustain it during its search for investors.

Would-be investors have been told that their money will be refunded as soon as practicable.

According to Mr Garvey, Yes TV's management is already talking to potential partners both from the UK and abroad. "We are talking to companies who are from the telecoms and media sectors and from the finance sector", he added.

Yes TV is providing films and music on demand over cable and telephone networks that can provide ADSL broadband connections.

The company promised "true" video-on-demand, combining the choice of pay-tv with the convenience of a video recorder. Subscribers were offered an e-mail service and internet access as well.

Partner churn

However, the company has been hit by a string of bad news recently.

It recently cut its ties with Kingston Communications, which was running a Yes TV trial, after the Hull-based telecoms group confirmed that it was in talks with other video-on-demand providers.

The UK's largest cable operator, NTL, abandoned co-operation with Yes TV after a commercial trial on its Cardiff cable network.

On the upside, Yes TV recently struck deals with French operators and agreed a London trial with British Telecom.

Yes TV was founded in 1995 by investment banker Thomas Kressner.