TalkTalk has bagged itself quite the deal, acquiring Tesco’s movie platform Blinkbox for a mere £5m.
Despite injecting millions into the digital streaming platform, Blinkbox continues to operate at a loss. The deal is part of Tesco’s plans to cut annual costs by £250m following four profit warnings and the accounting scandal.
TalkTalk plans on integrating the platform with its budget TV service, which has attracted 1.2m users.
The deal also includes Tesco’s 75,000 broadband customers and 20,000 landline customers. With BT pushing to buy EE, the timing of the deal will be a welcome boost for TalkTalk.
“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,” said Dido Harding, chief executive of TalkTalk. “The purchase of Tesco’s broadband base is another example of TalkTalk leveraging its national network to grow faster.”
As part of the deal, the co-founder of Blinkbox Adrian Letts will become managing director of TalkTalk’s TV operation.