Virgin Media O2 has reportedly restarted discussions with TalkTalk over a possible acquisition of its consumer division.
- TalkTalk subject of numerous recent acquisition talks – matter of when not if TalkTalk is taken over.
- No guarantee of a deal concerning debt-laden ISP.
- TalkTalk will be split in to three entities from March
The Daily Telegraph reports talks between Virgin Media O2 and TalkTalk are back on after being abandoned last year.
Virgin Media O2 is interested in the TalkTalk consumer division that encompasses all domestic broadband, phone and TV customers. Virgin is interested in strengthening its position at the budget end of the market, according to reports.
TalkTalk has been the subject of numerous rumours and reports in the past few year. The debt-laden company is currently restructuring and faces a big rise in borrowing costs, thanks to increased interest rates.
Next month, TalkTalk will split into three standalone companies. TalkTalk Consumer will become the company dealing with current domestic broadband, phone and TV customers. TalkTalk’s current small business and wholesale subsidiaries will also become separate standalone companies.
Although talks have recommenced, there’s no guarantee of a deal. Sky and Vodafone have previously also been named as potential bidders for TalkTalk’s consumer business.