BT Group has acquired TalkTalk’s main operating businesses out of administration, stepping in to protect services for 2.5 million customers after the broadband provider collapsed.
The acquisition was first reported in the media last week and confirmed today.
Allison Kirkby, Chief Executive of BT Group, said: “This is a genuinely unprecedented situation, where millions of citizens and businesses were at risk if TalkTalk had collapsed. BT is the digital backbone of the country, with a presence in every postcode.
“We have been connecting the nation for generations, stepping up in the moments that matter, and BT acquiring TalkTalk is now the only viable option to keep millions of customers connected and supported.
The telecoms group said it bought TalkTalk’s consumer arm and its wholesale business, PlatformX, debt-free after a prolonged attempt to sell the operations failed. BT said it had approached TalkTalk’s directors and offered to step in “in the public interest” to avoid disruption to vulnerable households and to connections supporting emergency services and other critical national infrastructure.
TalkTalk, one of the UK’s best-known broadband brands, has 1.5 million retail customers and 1 million wholesale customers.
It generated revenue of about £1.2bn over the past year but was loss-making. BT estimated the deal’s total cash impact in its 2027 financial year at around £400m, and said the acquisition would become earnings-enhancing over time as it stabilised the business and realised savings.
The transaction faces a regulatory review over the coming weeks, during which BT and TalkTalk will continue to operate separately and compete.
BT reconfirmed its financial guidance, excluding the deal’s impact.