TalkTalk Group has initiated discussions with potential buyers for various divisions, including one of the largest consumer internet providers in the UK. Sky News has reported that TalkTalk, known for providing landline and broadband services to approximately 1.7 million customers in the UK, has begun talks with interested parties in recent days.
These talks come after the company, which is privately owned, appointed bankers about four months ago to oversee a potential sale. Industry insiders have indicated that companies like Vodafone and Virgin Media O2 are among those expected to consider making bids for different parts of TalkTalk. The company, founded by Sir Charles Dunstone of The Carphone Warehouse, stands as one of the leading broadband providers in the UK, following giants like BT Group, Sky, and VMO2.
Aside from its consumer division, TalkTalk is also looking to sell its PlatformX Communications (PXC) wholesale and network unit. Within this unit, TalkTalk’s ethernet subsidiary could also be sold separately.
TalkTalk has been facing challenges with a heavily indebted balance sheet, but last summer saw a significant boost with a £120m capital injection, with the majority of the funds coming from Ares Management, a current lender and shareholder. This injection followed a £1.2bn refinancing in 2024, which didn’t prevent bondholders from pushing for further actions to strengthen the company’s financial position.
Over the past 18 months, TalkTalk has made efforts to reduce costs, including slashing hundreds of jobs and raising £50m through the sale of non-core customers to Utility Warehouse in March and June. The company’s business arm is now owned separately by TalkTalk’s shareholders, following a deal in 2023 when TalkTalk was taken private from the London Stock Exchange in a £1.1bn deal led by Toscafund and Penta Capital, with Sir Charles remaining a shareholder.
The company is currently under the leadership of chief executive James Smith. The broader alternative network sector in the UK, consisting of numerous broadband infrastructure companies, has been facing financial challenges due to high costs and low customer adoption rates. Recently, G.Network went into administration, while others are considering mergers to consolidate and reduce costs.
TalkTalk has chosen not to provide any comments on these developments.
SOURCE