Sky and Vodafone 'eye up' £3bn TalkTalk takeover

(Image credit: TalkTalk)

TalkTalk is preparing itself for a potential takeover after multiple reports suggested both Sky and Vodafone are interested in acquiring the self-proclaimed ‘no frills’ broadband provider.

Multiple reports have suggested TalkTalk’s owners have received informal approaches from both companies and has asked investment bank Lazard to assist with the process.

Any acquisition would not provide Sky or Vodafone with any significant physical infrastructure but would add 4.2 million customers – of which 2.4 million are fibre – to their respective subscriber bases

TalkTalk takeover

This expansion would immediately deliver a boost to broadband revenues and would be an opportunity to sell other products such as pay TV and mobile services that would drive average revenue per user (ARPU). 

Both companies would also enhance their scale to better compete with the likes of BT and Virgin Media O2.

TalkTalk has spent the past few years streamlining to focus on its core broadband business and the shift from copper to fibre rather than offering converged services.

In 2020, the company was taken private by founder Sir Charles Dunstone and investment firm Toscafund in a £1.1 billion transaction that valued the company at around £1.8 billion.

It is thought that both parties now believe TalkTalk is worth at least £3 billion.  

Sky and TalkTalk declined to comment to TechRadar Pro. Vodafone had not yet responded at the time of publication. 

Via Sky News

Steve McCaskill is TechRadar Pro's resident mobile industry expert, covering all aspects of the UK and global news, from operators to service providers and everything in between. He is a former editor of Silicon UK and journalist with over a decade's experience in the technology industry, writing about technology, in particular, telecoms, mobile and sports tech, sports, video games and media.