TalkTalk buys Blinkbox, gets Tesco's telephone and broadband subscribers too

Saturday, January 10th 2015

Blinkbox has been bought by TalkTalk from Tesco. But the surprise is that TalkTalk also gets their broadband and telephone subscribers, as per the announcement, that ended weeks of speculation.

Tesco has been in financial trouble and have been looking to offload less lucrative assets. The Blinkbox video streaming service has suffered from competition, by better offerings from Amazon, Netflix, NOW TV and others.

The announcement does not reveal the amount, but allegedly the deal is for £5 million. The debt acquired is not being transferred to TalkTalk. Earlier, Vodafone was known to have an interest in the service, to expand its multi-platform offerings, but TalkTalk has clinched the deal apparently.

TalkTalk will be exploiting Blinkbox's streaming technology for other services too, like a TV app for customers to help access paid-for content across a range of devices. Blinkbox will be integrated into their existing YouView (IPTV) based TV service by restructuring of the combined platform.

The acquisition of Tesco's reasonably successful fixed-line and broadband services is what is surprising in the deal. Last known Tesco broadband users were on Vodafone's LLU telecoms network. Over the next months they will be transferred to TalkTalk's platform.

CEO of TalkTalk, Dido Harding, said TalkTalk TV has become UK's fastest growing TV service and Blinkbox's platform and technology expertise will further accelerate development of their TV platform. Buying Tesco's broadband base will leverage growth of TalkTalk's national network and the acquisition will help the future of quad-play and give value for money advantage, he added.

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