Virgin Media O2 is back around the table with TalkTalk over a potential deal that would lead to Virgin taking on TalkTalk’s consumer division.
Two years ago plans for a full blown takeover were abandoned because of concern about market and regulatory uncertainty.
On Sunday, the Telegraph reported that a smaller deal was now under consideration ahead of a breakup of the business and a crucial debt refinancing.
TalkTalk’s consumer division serves around 2.4m residential customers, including around half a million former Shell customers acquired from Octopus energy. Virgin would benefit from an expanded retail base and a new customer segment at the value end of the market.
The TalkTalk demerger will allow each company to focus on meeting the needs of their distinctive customer bases, eliminate operational complexity, and support balance sheet refinancing and investment on a standalone basis.
TalkTalk is splitting into three independent companies: the B2B Wholesale Platform; TalkTalk Consumer and TalkTalk Business Direct.
Sky has previously been linked as a possible purchaser of the business division.
Broadband TV News has approached Virgin Media and TalkTalk for comment.
TalkTalk said it had no comment on this occasion.
