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TalkTalk buys blinkbox as Tesco quits content and broadband sectors

January 8, 2015 - Martin Hoscik@seenituk

blinkbox_device_montage2TalkTalk has bought TV and movie streaming service blinkbox from troubled supermarket Tesco.

The retailer is reviewing all operations following revelations that it has been overstating profits, news which has prompted an investigation from city financial regulators.

It’s understood that blinkbox has been loss-making for some time, although TalkTalk says the transaction is free of debt.

Adrian Letts, blinkbox CEO and co-founder will join TalkTalk as Managing Director for TV.

TalkTalk says work will begin “immediately” to merge blinkbox with its existing TV business, with the ISP looking to use blinkbox’s existing expertise in building content apps to “accelerate” development of its own services.

In recent months the ISP has fallen behind rival and fellow YouView shareholder BT which has launched a buy to keep movie service on its set top boxes and an app allowing purchases to be watched while out of the home.

Today’s deal also sees Tesco exit the broadband business, transferring around 75,000 customers to TalkTalk.

Dido Harding, Chief Executive of TalkTalk commented: “We are excited about the opportunity that blinkbox’s platform and technology expertise bring, and which will significantly accelerate the development of our TV platform. 

“The purchase of Tesco’s broadband base is another example of TalkTalk leveraging its national network to grow faster. 

“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.”

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