BT has bought TalkTalk's consumer and wholesale businesses out of administration, securing services used by 2.5 million customers. The debt-free acquisition of TalkTalk Telecommunications Limited and PlatformX Communications Limited is expected to cost BT roughly £400 million in cash this financial year. TalkTalk generated about £1.2 billion in revenue over the past year but was loss-making.
The UK government intervened after warning that a collapse could disrupt emergency calls, hospital communications, and medical alarms. Culture Secretary Lisa Nandy issued a Public Interest Intervention Notice under the Enterprise Act 2002, and the Competition and Markets Authority must report back by October 19. BT says the acquired businesses will operate separately and continue to compete while the review is pending.
BT chief executive Allison Kirkby described the situation as unprecedented and said the immediate priority is to stabilise the business. Clive Selley will lead integration planning. Analyst Kester Mann of CCS Insight said the deal cements TalkTalk's decline and will draw regulatory scrutiny, particularly given the CMA's recent concerns about nexfibre's planned acquisition of Netomnia.