BT Acquires TalkTalk Out of Administration for £400M, Saving 900 Jobs

BT Group has acquired struggling broadband provider TalkTalk and its wholesale unit PlatformX out of administration for £400 million, saving 900 jobs and maintaining service to 2.5 million customers. The UK government overrode competition rules under the Enterprise Act 2002, citing risks to critical national infrastructure and vulnerable customers. Culture Secretary Lisa Nandy said the failure of TalkTalk, which serves over one million homes, posed a genuine risk to hospitals, schools and emergency services. TalkTalk had sought a buyer amid a £1.4 billion debt load. Lenders, including US private credit firm Ares Management, threatened litigation before backing the deal; Ares received £100 million in the transaction. TalkTalk emerges debt-free. BT said the deal will result in a £400 million cash hit to its fiscal 2027 results. CEO Allison Kirkby called the situation unprecedented and said stabilizing the business is the immediate priority. BT shares rose over 1% in early trading.