Virgin Media O2’s co-owner Telefonica are looking at a full takeover of the company, according to a Daily Telegraph report.
Telefonica, which holds a 50 per cent stake in Virgin Media O2, is exploring plans for a deal that would enable it to buy out its US joint venture partner Liberty Global.
The report said that Marc Murtra, the Telefonica chairman, has held discussions with advisers, though no formal proposals have been drawn up.
Telefonica could look to take full control of Virgin Media O2 as part of a broader effort to build scale across Europe.
Virgin Media O2, which has more than 45 million mobile and broadband customers in the UK, was formed through a £31 billion mega merger in 2021.
However, Telefonica has since written down its share in the company and the future of the joint venture is now uncertain as the Madrid-based telecoms company carries out a comprehensive strategic review.
Murtra initiated the review after he was brought in by the Spanish government, which holds a 10 per cent stake in Telefonica, earlier this year.
Liberty Global has also stopped its search for external funding for Virgin Media O2’s new wholesale division, which was supposed to launch in the first half of the year, but has now been delayed.
A lock-up period stipulated under the terms of Virgin Media O2’s merger has now expired, meaning either company can initiate a stock market float.
Emilio Gayo, Telefonica’s chief operating officer, said, “We’re very happy with the current situation. The joint venture is working very well, we don’t have any proposals on the table to change that situation at the moment.
“Both companies, Liberty and Telefonica, are trying to find the best ways to develop the business.”
VMO2 declined to comment.