British fixed-line operator TalkTalk has bought video-on-demand service Blinkbox from UK supermarket giant Tesco.
TalkTalk is also acquiring Tesco’s 75,000 broadband and 20,000 landline telephone customers as part of the all-cash, debt-free…
British fixed-line operator TalkTalk has bought video-on-demand service Blinkbox from UK supermarket giant Tesco.
TalkTalk is also acquiring Tesco’s 75,000 broadband and 20,000 landline telephone customers as part of the all-cash, debt-free deal.
Tesco is selling the assets for £5m (US$7.5m) according to Sky News. Neither TalkTalk nor Tesco would confirm or deny that figure.
In October last year Tesco launched a strategic review of Blinkbox, which it acquired in 2011 to much fanfare. Blinkbox has struggled to compete against larger rivals Netflix and Amazon Prime.
At the end of November, Vodafone was widely reported to have held talks regarding Blinkbox which failed to result in an agreement.
In a statement, TalkTalk said Blinkbox’s technical expertise in multi-platform, multi-device content delivery and incremental content relationships complimented its own business. Blinkbox will also help TalkTalk to accelerate the launch of a TV app for its customers to access paid-for content across a range of devices.
Adrian Letts, Blinkbox CEO and co-founder, will join TalkTalk as managing director for TV.
TalkTalk CEO Dido Harding said: “We are excited about the future of quad-play – fixed phone and broadband, TV and mobile – and this acquisition will help to further drive home our value for money advantage.”
The acquisition, which has closed, bolsters TalkTalk’s TV business, which already has 1.2 million subscribers, and is a continuation of the convergence narrative that looks set to dominate UK telecoms market this year.
BT kicked off the expected trend in December when it announced it was in advanced talks to acquire mobile operator EE which would see it become the UK’s first true quad-play operator.
