Broadband ISP TalkTalk Ponders Sale of UK Business Division
Budget broadband ISP TalkTalk is reportedly mulling over the possibility of selling their business-to-business arm (TT Business Direct Limited), which is home to around 80,000 customers and could be worth over £200 million. The provider is understood to have hired bankers at Houlihan Lokey to oversee the plan.
In case anybody has forgotten, we recently reported that the privately-owned TalkTalk was going through somewhat of a management shake-up and considering its future options (here). This came after Virgin Media (VMO2) reportedly went cold on the idea of reaching a £3bn merger deal with the provider (here).
According to Sky News, the provider is now allegedly in the early stages of a process to sell their TalkTalk Business Direct arm, which could include a long-term wholesale agreement providing preferential access to their network. The proceeds from such a sale would apparently be reinvested into the company’s wholesale platform.
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The ISP is currently known to be under pressure from a growing pile of debt, rising interest rates / costs and the increasingly competitive nature of the UK’s wider broadband market. But if they can’t find a suitable buyer for the whole business, then selling off some of it in chunks might certainly be another approach they could take.
Mark is a professional technology writer, IT consultant and computer engineer from Dorset (England), he also founded ISPreview in 1999 and enjoys analysing the latest telecoms and broadband developments. Find me on X (Twitter), Mastodon, Facebook, BlueSky, Threads.net and Linkedin.
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This was something which they looked at a few years ago, had a buyer but the deal fell through. So not shocked they are trying once again.
Hope the customer service for business customers is better than the public.
The service I’ve received, or not received, in the last few week is the worst I’ve received from any company.
Indeed it is, which is part of the reason the business pay more while the consumer prices are bargain basement.
@Reality Bytes, Talk Talk is not such a bargain-basement ISP these days compared to others, They are more expensive than other providers, and they still don’t recognise that we have openreach fibre up here.
while I do feel sorry for staff working there with uncertainty about their jobs, I have no loved lost between me and Talk Talk and I have never used, just had to cope with them a few times.
Better providers out there that are better priced and have better customer service.
I have to admit I’m bemused why anyone would buy this.
Their residential customer base is useful as an anchor tenant for an FTTP build. The whole operation is useful to provide both retail and wholesale customers.
I can’t see much value in the B2B retail base, and given this is usually where the profit lies TalkTalk really need cash, this user base is mostly low margin single site broadband or both.
Managed services to enterprises are where the money is. If there’s none of that here this is 80,000 mostly broadband customers. Hardly a game changer for the players that can afford to buy this.
Reeks of needing to raise cash.