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The incredibly confusing twists and turns of the debt-ridden TalkTalk Group’s attempts to dispose of both their consumer broadband ISP business and their PXC (PlatformX Communications) wholesale business has finally reached a conclusion today. BT has agreed to acquire both businesses from administration.
Just to recap. TalkTalk has long been trying to sell off their remaining businesses. In recent weeks and months the Group has held talks with various potential suitors. For example, private equity firm Epiris and venture capital investors at Octopus Investments both expressed an interest in PXC, while TalkTalk’s consumer business courted interest from Vodafone and Opus Broadband.
Unfortunately, TalkTalk has struggled to reach an agreement with any of them. The situation reflects difficulties that stem from the company’s significant debt, as well as the fact that its consumer business is closely linked to products supplied by their wholesale (PXC) business (any deal has to be complementary), the provider’s rapidly shrinking customer base and disagreements over company valuations etc.