O2 has signed a three-year £2.25 million deal with Arsenal for the exclusive mobile content rights to London’s football club’s matches. This deal follows a four-year deal £10 million O2 signed with Arsenal for the branding on players’ shirts, which ends this season. O2’s main sponsorship will now be given to the Millennium Dome, which is being renamed The O2 after a £6 million per year deal.

Telefonica, a mammoth Spanish telecom with major mobile networks in the south of Europe and Latin America, has made a bid to acquire UK’s biggest carrier, O2, for GBP 18 billion ($32 billion).

The bid is being recommended by O2’s board and will complete early next year if it is accepted by shareholders. Telefonica has announced that O2 will maintain its current branding with a headquarters in the UK.

In this month’s Official Xbox Magazine, places one of the first targets for sales volumes for the Xbox 360. At a recent gathering of industry analysts after presenting Microsoft’s financials, Microsoft CFO Chris Liddell told the group that the company hopes to have 4.5 to 5.5 million consoles on the market by the middle of next year worldwide.

Liddell again reiterated a warning that launch volumes may be low but that the company was focusing on maintaining a steady flow of the console into retail lines.