Mobile network operator O2 is reportedly in talks with one of Asia's richest men who may buy it for £9 billion.
O2 is Britain's second largest mobile operator as well as sponsor of the England rugby team. This deal would unite O2 and Three according to The Sunday Times.
Telefonica, which owns O2, is in talks with Three's owner, Hutchison Whampoa. It is the Hong Kong tycoon Li Ka-shing who controls Three.
This will follow another phone operator buyout if BT's £12.5 billion acquisition of EE goes through as planned. As operators rush to offer everything in one package - phone, broadband and TV - companies are buying each other out to offer the best package to customers. BT's proposed buyout of EE, for example, followed the launch of its EE TV that the company hopes will replace competitors like YouView, Sky and Virgin under families' TVs in the lounge.
O2 is currently in debt and looking for a way to exit the UK, according to Bloomberg. It reports that O2 may also consider selling off to the public.
Li Ka-shing has already bought Telefonica's Irish business for £650 million to combine it with Three Ireland.
All the businesses involved in the deal have declined to comment at this stage.