Latest News

Virgin Media O2 and TalkTalk renew takeover talks

0

Virgin Media O2 and TalkTalk renew takeover talks By Proactive Investors

Breaking News

‘;

Stock Markets

Published Feb 12, 2024 09:04

© Reuters. Virgin Media O2 and TalkTalk renew takeover talks

Proactive Investors – Virgin Media O2 (VMO2) has reignited discussions for a potential acquisition of TalkTalk’s consumer division, according to a Telegraph report.

The move marks a renewed interest after a previously contemplated £3bn deal, including debt, was shelved two years ago due to market and regulatory uncertainties,

TalkTalk is considering divesting its consumer segment as part of a broader restructuring to manage a pressing need to refinance its debts.

TalkTalk consumer division has around 2.4 million residential users, recently expanded by the acquisition of half a million Shell PLC (LON:SHEL) customers from Octopus Energy (LON:ORIT).

This potential acquisition by VMO2 aims to bolster its retail customer base and enhance its footprint in the market’s value segment.

A key component of the deal could be a wholesale agreement with TalkTalk, with VMO2 planning a transition of these customers to its full-fibre network eventually.

However, the talks are reportedly in their infancy, and there’s no assurance that an agreement will be reached.

Financial strain has led TalkTalk to initiate a breakup of its operations, having already divested its business division for £95 million to a vehicle controlled by its primary investors.

Furthermore, the company is exploring the sale of a stake in its wholesale operations to US-based DigitalBridge, alongside plans to separate the consumer division post-refinancing.

TalkTalk reported a loss of 100,000 retail customers in the first quarter of 2023 as it curtailed its sales and marketing expenditure by 40%.

The company has also sought to extend credit terms with suppliers to up to 300 days in an effort to bolster its liquidity.

Read more on Proactive Investors UK

Disclaimer

Virgin Media O2 and TalkTalk renew takeover talks

Our Apps



Terms And Conditions
Privacy Policy
Risk Warning
Do not sell my personal information

© 2007-2024 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Pound to dollar rate week ahead forecast: 1.27 eyed, inflation bonanza awaits

Previous article

Warren Buffett Just Added $246 Million to 1 of Berkshire Hathaway’s Top Holdings

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News