TalkTalk on brink of break-up as Octopus snares PXC network arm. Saturday, 8 August 2026 11:08 By Mark Kleinman, City editor TalkTalk, one of Britain's biggest telecoms and broadband suppliers, is on the brink of being broken up as it nears exclusive talks about the sale of its wholesale network to Octopus Investments. Sky News has learnt that advisers to TalkTalk are this weekend preparing to enter advanced talks with Octopus - which manages broadband infrastructure group Fern Trading - about a deal to buy PlatformX Communications (PXC). Octopus Investments is understood to have seen off competition from the private equity group Epiris, which has been working with PXC's executive chairman, Tom O'Hagan, for several months on a potential transaction. A period of exclusivity is expected to last several weeks while Octopus Investments finalises financing for the deal. Fern Trading's assets, which also span renewable energy and real estate, include Vorboss, an enterprise fibre business, and a retail operation called AllPoints Fibre. If completed, a deal would herald a full break-up of TalkTalk, which was founded by Sir Charles Dunstone, one of Britain's best-known entrepreneurs, more than 20 years ago. City sources said this weekend that TalkTalk's remaining business - its consumer arm, which serves about 1.8 million customers - had drawn bid interest from Opus Broadband, a business run by the former boss of Tiny Computers, Tahir Mohsan. VodafoneThree has also been reported to have expressed a desire to buy TalkTalk's consumer division, which is expected to be sold later this year. However, sources cautioned that the retail operation could continue under TalkTalk if a sale cannot be concluded. It was unclear this weekend in what form the various transactions involving TalkTalk assets would be implemented if they go ahead. If Octopus Investments does proceed with a formal offer for PXC, it would value the business at several hundred million pounds, according to banking sources. This week, Octopus Investments told backers of its Octopus Inheritance Tax Service (OITS) - which allows investors to receive returns free of inheritance tax liabilities - that it was suspending applications and redemptions because of a material transaction involving Fern Trading. A person close to the situation said the reference was to the prospective deal with PXC. TalkTalk's consumer arm is said to have a broadly similar valuation to PXC, while the group continues to carry a substantial debt pile after a series of refinancings led by Ares Management, the investment giant. Ares, which is also a shareholder in TalkTalk, spearheaded a deal to inject a further £115m into the business as recently as February. TalkTalk, which was founded with the objective of shaking up Britain's consumer telecoms market, was taken private in 2021 in a deal led by Toscafund Asset Management and Sir Charles's private investment vehicle. It has struggled for long periods since then, with cashflow difficulties - exacerbated by a haemorrhaging of its retail customer base - meaning the group's valuation has shrunk significantly over the last five years. Read more from Sky News: Ashley leads race to clinch Harvey Nichols takeover Japanese owner weighs options for British fashion brand Last week, TalkTalk agreed a deal to offload 120,000 customers to Rise Fibre, a fledgling rival in the consumer broadband sector. It remains, however, among the largest broadband suppliers in the country, behind BT Group, Sky - the immediate owner of Sky News - and Virgin Media O2. PJT Partners, the investment bank, has been advising TalkTalk on the sale process for PXC, which is one of the UK's most significant telecoms infrastructure providers. TalkTalk, Ares and Octopus Investments declined to comment, while Opus Broadband has been contacted for comment.

Salford-based TalkTalk on brink of full break-up after 20 years in operation. The broadband and telecommunications company has its headquarters in Greater Manchester. One of the UK's major broadband and telecommunications providers is on the brink of being formally broken up after two decades in operation. Article continues below Men who stole cars filmed themselves with the vehicles Octopus Investments - the owner of broadband infrastructure group Fern Trading - is nearing an agreement to acquire TalkTalk's wholesale network arm, PlatformX Communications (PXC). Article continues below According to Sky News, advisers to TalkTalk are this weekend preparing to enter advanced talks with Octopus to finalise a deal. This sale marks a pivotal moment in the restructuring of TalkTalk's long-standing business model. TalkTalk was founded more than 20 years ago by Sir Charles Dunstone, one of Britain's best-known entrepreneurs. Initially a subsidiary of Carphone Warehouse, it was demerged as a standalone company in March 2010. It is currently the fifth-largest broadband provider in the UK, behind BT Group, Sky, Virgin Media O2, and Vodafone. The company has its headquarters at the Soapworks building on Ordsall Lane in Salford. You May Like Industry sources have also said this weekend that TalkTalk's remaining business - its consumer arm, which serves about 1.8 million customers - has drawn bid interest from Opus Broadband, a business run by the former boss of Tiny Computers, Tahir Mohsan. VodafoneThree has also been reported to have expressed a desire to buy TalkTalk's consumer division. Despite this interest, sources cautioned that the retail operation could continue under TalkTalk if a sale cannot be concluded. The pending transaction effectively signals the final stages of TalkTalk's formal demerger strategy, following prior efforts to separate its direct-to-consumer broadband operations from its network asset holdings. Article continues below 138205439166 Proceeds from the infrastructure sale are expected to address TalkTalk's substantial debt balance, which has placed sustained pressure on the group's financial structure. TalkTalk previously initiated plans to divide its operations into distinct independent entities - its direct consumer broadband division, its business services unit, and its wholesale platform PXC. Having already completed the carve-out of its corporate business unit, the prospective sale of PXC to Octopus leaves TalkTalk's consumer broadband customer base as a standalone entity. Article continues below 138205441690 Last week, TalkTalk agreed a deal to offload 120,000 customers to Rise Fibre, a fledgling rival in the consumer broadband sector. Rise Fibre is a relatively new full fibre broadband provider that only launched in June 2025, The Sun reports. It runs on the Openreach, CityFibre and 4th Utility networks, and full fibre is generally seen as more reliable than standard fibre, offering speeds up to 30 times faster. Neither TalkTalk nor Octopus Investments has formally commented on the ongoing negotiations, though reports suggest an official agreement on exclusivity is anticipated shortly.