Telefonica, the Spanish telecoms giant and co-owner of Virgin Media O2, is reportedly exploring a full takeover of the UK mobile and broadband provider. According to a report by The Daily Telegraph, Telefonica is considering a deal to buy out its joint venture partner, Liberty Global, which currently owns the other 50% of the business.
Talks are still at an early stage, with no formal proposals on the table. However, Telefonica chairman Marc Murtra has held preliminary discussions with advisers about the potential buyout. The move is seen as part of Telefonica’s broader strategy to expand its footprint across Europe.
Virgin Media O2 was formed in 2021 following a £31 billion merger between the two telecom companies. The joint venture now serves over 45 million mobile and broadband customers across the UK. But despite the scale of the business, Telefonica has since written down the value of its stake and is now conducting a full strategic review of its investment.
Despite the speculation, Telefonica’s chief operating officer Emilio Gayo has downplayed the reports. “We’re very happy with the current situation. The joint venture is working very well, and we don’t have any proposals on the table to change that at the moment,” he said. “Both companies are trying to find the best ways to develop the business.”
