TalkTalk and Daisy have decided not to go ahead with their proposed marriage but the telecoms firms have decided to stay friends.
According to the London Stock Exchange, the pair announced that the deal had fallen through.
Following the announcement, TalkTalk revealed its plans to “simplify” its B2B arm and Daisy Group will remain as a strategic partner in the running of the division. Daisy will continue to provide services to TalkTalk’s direct customers, which TalkTalk will continue to manage.
TalkTalk can focus on the indirect market, which it believes is where the growth and innovation is.
“The deal allows TalkTalk Business to further prioritise the indirect market, where it has real strength and where we see an opportunity to grow at pace”, TalkTalk explained in its annual report, released in mid-June. “It also allows us to remove significant cost and complexity from the business.”
TalkTalk warned it will need to make cutbacks in order to keep its business division afloat, but it thinks this is enough to continue operating.
“As we continue to simplify the business to focus on fewer priorities, we are making significant Opex and Capex reductions, which we expect to drive material cost improvements in 2019. We go into the year as a leaner, more efficient business and that cost discipline will continue to underpin our value propositions”, the report concluded.
Daisy Group’s CEO Neil Muller has stepped down and rumours claim the company’s founder and owner, Matthew Riley wants to wholly own the company, buying back shares from independent shareholders.
