- TalkTalk is exploring a split between its consumer and wholesale/network divisions, hiring advisers to manage the potential breakup.
- The move comes after financial challenges including late payments, major customer losses, job cuts, and heavy debt.
What happened: UK’s TalkTalk considers breakup of its consumer and wholesale network units
TalkTalk is reportedly considering dividing its consumer broadband unit from its wholesale and network division, PXC. The company has engaged advisers to explore the split and is understanding bids from firms such as Barclays and Morgan Stanley to manage the process.
This review follows a series of financial strains: TalkTalk fell behind on payments to suppliers including BT Openreach and CityFibre, lost 400,000 customers, reduced its workforce by around 20%, and carries nearly £1.2 billion in debt. The firm has already sold some business operations and completed a £400 million refinancing earlier this year.
Also read: BT weighs TalkTalk takeover to expand broadband market share
Also read: TalkTalk and O2 lead complaints in Ofcom survey
Why it’s important
Splitting the business could give investors a clearer view of each division’s performance and may prompt increased interest from potential buyers such as BT. However, the restructuring could also incur significant costs and distract management during a challenging period. It remains to be seen whether separating the units would help stabilise the company’s finances or address deeper issues like declining subscriber numbers and high debt levels.
