TalkTalk dials up effort to sell consumer and wholesale arms

TalkTalk Group has kicked off talks with prospective bidders for divisions including one of Britain's biggest consumer internet providers.

Sky News has learnt that TalkTalk, which supplies landline and broadband services to about 1.7 million UK customers, has begun discussions with potential buyers in the last few days.

The initiation of talks comes about four months after the privately owned company appointed bankers to oversee a sale.

Industry sources said the likes of Vodafone and Virgin Media O2 were among those expected to explore bids for parts of the group, which was founded by The Carphone Warehouse billionaire Sir Charles Dunstone.

TalkTalk ranks among the largest broadband suppliers in the country, behind BT Group, Sky and VMO2.

In addition to its consumer division, the PlatformX Communications (PXC) wholesale and network unit of TalkTalk is also for sale.

Within the latter unit, TalkTalk's ethernet subsidiary could also be sold on a standalone basis.

TalkTalk, which has been grappling with a heavily indebted balance sheet for some time, secured a significant boost last summer when it agreed a £120m capital injection.

The bulk of those funds came from Ares Management, an existing lender to and shareholder in the company.

That new funding followed a £1.2bn refinancing completed in 2024, but which failed to prevent bondholders pushing for further moves to strengthen its balance sheet.

Over the last 18 months, TalkTalk has slashed hundreds of jobs in an attempt to exert a tighter grip on costs.

It also raised £50m from two disposals last March and June, comprising the sale of non-core customers to Utility Warehouse.

The company's business arm is separately owned by TalkTalk's shareholders, following a deal struck in 2023.

TalkTalk was taken private from the London Stock Exchange in a £1.1bn deal led by Toscafund and Penta Capital.

Sir Charles, the group's executive chairman, is also a shareholder.

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The company is now run by chief executive James Smith.

Britain's altnet sector, which comprises dozens of broadband infrastructure groups, has been struggling financially because of soaring costs and low customer take-up.

In recent weeks, G.Network has fallen into administration, while others are exploring mergers in an effort to consolidate and cut costs.

TalkTalk declined to comment.

(c) Sky News 2026: TalkTalk dials up effort to sell consumer and wholesale arms