UK broadband provider TalkTalk is in talks over a potential sale of its consumer and wholesale units.

As reported by Sky News earlier this week, the company has kicked off discussions with prospective bidders for the units over the last few days.

Sources told Sky News that Vodafone and Virgin Media O2 are among those expected to explore possible bids for the group.

TalkTalk is currently the fourth-largest broadband provider in the UK, behind BT Group, Sky, and Virgin Media O2. The company has around 1.7 million customers.

TalkTalk appointed bankers to oversee a sale of the units about four months ago.

The company has struggled in recent years, losing a significant number of customers during this time. TalkTalk has also reduced its overall headcount by 20 percent, including the loss of 130 jobs at its Salford consumer division in December.

Last year, the company, founded by Sir Charles Dunstone, agreed a £120m ($165.7m) capital injection from an existing shareholder.

In 2021, Toscafund Asset Management, previously the second-largest shareholder in the company, completed a takeover of TalkTalk for £1.1bn ($1.49bn).

Two years later, the company split its business into three units: B2B Wholesale Platform, TalkTalk Consumer, and TalkTalk Business Direct, before TalkTalk sold the latter to TFP Telecoms Limited (TFP), a special purpose vehicle controlled by the main shareholders of TalkTalk Telecom Group Limited (TTG).

TalkTalk has also been subject to a possible takeover, with reports last year suggesting that rival broadband provider BT is interested.