Virgin Media O2, TalkTalk resume talks
February 12, 2024
Virgin Media O2 has renewed its interest in acquiring TalkTalk’s consumer division after a larger £3 billion deal for the entire ISP was abandoned in Q4 2022 following market and regulatory uncertainty.
Discussions are said to be in their early stages, with no guarantee of a deal, according to The Telegraph.
TalkTalk is currently restructuring ahead of a significant debt refinancing this year, where it will face a substantial increase in borrowing costs. The company is struggling with a £1.1 billion debt pile, and plans to split into three standalone companies in March. The trio of units will be focused on business-to-business wholesale telecoms services, consumer broadband (TalkTalk Consumer) and small businesses (TalkTalk Business Direct).
For Virgin Media O2, the acquisition presents an opportunity to expand its retail customer base and strengthen its position in the budget end of the market. TalkTalk’s consumer division serves around 2.4 million residential customers.