Vodafone in talks to buy TalkTalk: report
Key Points
- VodafoneThree has submitted a second-round bid for TalkTalk's consumer division, the Financial Times reports.
- TalkTalk's consumer business serves 1.75 million customers and could be worth £200 million to £300 million.
- VodafoneThree wants to grow its UK broadband base to more than 4 million customers by the early 2030s.
- TalkTalk has lost over 750,000 retail customers since 2023 and has struggled with debt since its 2021 buyout by Toscafund.
- TalkTalk is also seeking a buyer for its wholesale division, PXC.
VodafoneThree has submitted a bid for TalkTalk’s consumer business, according to a Financial Times report.
The group, formed through the £16.5 billion merger between Vodafone UK and Three last year, made a late entry into the long-running auction of TalkTalk’s consumer division after initially declining to take part, the paper reported, citing four people familiar with the matter.
TalkTalk’s consumer division serves 1.75 million customers. VodafoneThree was one of several companies to submit second-round bids last week, and analysts at New Street Research estimate the business could be worth between £200 million and £300 million.
A deal would accelerate VodafoneThree’s push into home broadband. The company, led by chief executive Margherita Della Valle, wants to more than double its UK broadband customer base to over 4 million by the early 2030s. It currently has around 29 million mobile customers, making it the UK’s largest mobile operator.
Vodafone agreed a deal to take full control of the merged company last month, years earlier than originally expected.
TalkTalk has struggled since London-based hedge fund Toscafund bought it in 2021. The £1.1 billion leveraged buyout added £527 million of debt to its balance sheet and left the company exposed to rising interest rates.
Its retail customer base has fallen from more than 2.5 million in 2023 to 1.75 million as of May 2026.
Alongside the sale of its consumer business, TalkTalk is also seeking a buyer for its wholesale division, PXC. The FT reported in March that bidders included Octopus Investments and a private equity-backed management buyout led by executive chair Tom O’Hagan.
