BT to buy broadband supplier TalkTalk, saving 900 jobs
Summary
BT has agreed to buy the broadband supplier TalkTalk to save 900 jobs and keep services running for 2.5 million customers. The deal, costing about £400 million, aims to prevent disruptions in broadband services, especially for vulnerable users and emergency services.Key Facts
- BT will buy TalkTalk and its wholesale business PlatformX Communications without taking on its debt.
- The British government, led by secretary Lisa Nandy, supported the deal to protect public services and vulnerable customers.
- BT expects to spend around £400 million in its current financial year on the deal, including transaction costs and estimated losses.
- TalkTalk has lost many retail customers, shrinking from 4 million in 2019 to about 1.5 million now.
- TalkTalk was taken private in 2021 by hedge fund Toscafund but has struggled under heavy debt and lender control.
- The acquisition adds 1.5 million broadband customers to BT, which already holds about 30% of the UK broadband market.
- The companies will operate separately and still compete until regulators finish reviewing the deal.
- TalkTalk’s 900 employees will transfer to BT as part of the sale.
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