TalkTalk Begins Talks to Sell Consumer and Wholesale Broadband Units

TalkTalk Group has started formal discussions with prospective buyers for its consumer broadband business and its wholesale and network division, PlatformX Communications (PXC), as part of a corporate restructuring effort.

The company previously appointed bankers to oversee a possible sale process and has invited Barclays and Morgan Stanley to participate in the advisory role. Vodafone and Virgin Media O2 are among the parties expected to consider bids for the assets.

TalkTalk supplies landline and broadband services to around 1.7 million customers in the UK, ranking behind BT Group, Sky, and Virgin Media O2 in market share. The company has experienced a reduction in its customer base and has undertaken measures to address its financial position.

Over the past 18 months, TalkTalk has reduced its workforce by several hundred positions and raised £50 million through the sale of non-core customers to Utility Warehouse. In 2023, its Business Direct unit was sold to shareholders and now operates separately.

What the numbers show

• TalkTalk’s EBITDA declined to £128 million in the year to February 2025
• Revenue fell 7% to £1.4 billion in the same period
• Broadband market share dropped from 14% to 11% as alternative networks grew
• Shareholders injected £235 million at the end of 2024 to stabilize finances
• TalkTalk lost about 400,000 broadband customers in the year to February 2025

TalkTalk completed a £1.2 billion refinancing in 2024, but bondholders continued to seek further improvements to the company’s balance sheet. The company’s debt burden remains high following a leveraged buyout and subsequent shareholder capital injections.

In July 2025, TalkTalk received £100 million in new funding from Ares Management, a shareholder and lender, along with about £50 million from asset sales and amendments to its debt facilities. This increased the company’s funding capacity by more than £200 million.

TalkTalk was taken private in a £1.1 billion transaction led by Toscafund and Penta Capital, with Sir Charles Dunstone continuing as executive chairman and shareholder. The company’s restructuring also included the appointment of advisers to manage a break-up process in mid-2025.

Potential bidders for TalkTalk’s consumer and wholesale operations are expected to include major telecom groups. The company continues to explore options to strengthen its financial position and streamline its business structure.

* This article is based on publicly available information at the time of writing.