TalkTalk has acquired Tesco’s pay-as-you-go digital movie and TV service, blinkbox. The strategic acquisition will allow the expansion of TalkTalk TV and help speed up the delivery of TalkTalk’s TV app.
blinkbox co-founder and CEO Adrian Letts will join TalkTalk as managing director for TV, enabling the provider to benefit from blinkbox’s technical TV and content expertise.
Meanwhile, TalkTalk will increase its broadband and voice bases by 75,000 and 20,000 households respectively. Tesco customers will be transferred to the TalkTalk network over the coming months.
The sale of the assets comes as part of a wider turnaround strategy by Tesco. The plans will also see the beleaguered retailer closing stores, relocating the head office and cutting central costs.
Dido Harding, Chief Executive of TalkTalk, commented: "Since launch TalkTalk TV has demonstrated its popularity with value-seeking customers to become the UK’s fastest growing TV service. 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."
