BT Rescues TalkTalk in £400m Deal
The takeover will provide a safety net for TalkTalk's 1.5 million retail customers and 1 million wholesale customers across the UK, pending approval from the UK's competition regulator
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The deal will save 900 jobs at TalkTalk.
Story published. The takeover will provide a safety net for TalkTalk's 1.5 million retail customers and 1 million wholesale customers across the UK, pending approval from the UK's competition regulator
BT has agreed to rescue broadband operator TalkTalk in a takeover deal worth £400m. The deal, which will need to be approved by the UK's competition regulator, will provide a safety net for TalkTalk's 1.5 million retail customers and 1 million wholesale customers across the UK.
The acquisition marks the end of months of speculation over TalkTalk's future due to its debts. BT chief executive Alison Kirkby said the deal provides a safety net for households and businesses who rely on TalkTalk. TalkTalk has been struggling, reporting revenues of £1.2bn in the last 12 months while being loss-making.
Clive Selley will lead the stabilisation and integration planning of the acquisition, BT said. He was appointed as head of BT’s international business in April, after running Openreach for more than 10 years. Martijn Blanken will take over his role as CEO of BT International, in addition to being CEO-designate of BT’s proposed international joint venture with Verizon.
The deal is expected to cost BT £400m, comprising consideration, transaction and administration costs, working capital impacts as well as a trading loss of £60m and non-receipt of £100m otherwise due to Openreach. TalkTalk employs 90 people, and the acquisition will provide reassurance for its employees, as well as its customers, including vulnerable households and connections that support critical national infrastructure providers.
## Why it matters The takeover is significant as it provides a safety net for TalkTalk's customers, including vulnerable households and key public services. BT recognised the risk to the country, especially vulnerable customers and key public services, should TalkTalk collapse. By acquiring the business out of administration, BT is providing reassurance for TalkTalk's employees, customers, and the wider community.
The deal is subject to approval from the UK's competition regulator, and its outcome will be closely watched by the industry and customers alike. The acquisition highlights the importance of ensuring the stability and continuity of critical services, such as broadband, for households and businesses across the UK.
