TalkTalk £200m B2B arm sale would be “unsurprising”
A reported sale of TalkTalk’s B2B arm would be unsurprising, according to an industry analyst.
It was reported on Monday by Sky News that TalkTalk had hired bankers to oversee a sale of its B2B division, which could be worth over £200 million.
TalkTalk Business Direct serves over 80,000 small businesses and corporate customers.
Paolo Pescatore TMT analyst at PP Foresight believes given that TalkTalk is struggling to compete in a “tough competitive landscape”, there are few strategic options left for the operator.
“All providers are seeking ways to reduce cost and debt and increase much needed revenue,” he says.
“It is unsurprising to see all sorts of rumours doing the rounds given the need to consolidate and compete at scale.”
Pescatore adds that while a full sale seems unlikely, all options are on the table for TalkTalk including offloading assets.
The Sky News report added that any sale would include a long-term wholesale agreement providing preferential access to the TalkTalk network.
TalkTalk Business Direct reported annual revenue of over £85 million and EBITDA of over £17 million.