TalkTalk has acquired Tesco’s loss-making video service Blinkbox and the ailing retailer’s broadband and telephony business in a deal thought to be worth about £5m.
As part of the deal TalkTalk has hired Adrian Letts, the co-founder of the eight-year-old Blinkbox business, to be managing director of its overall TV operation.
TalkTalk has attracted 1.2 million customers to its budget TV service.
Under the terms of the deal TalkTalk has acquired the assets, which include Tesco’s 75,000 broadband customers and 20,000 home landline customers, debt free for about £5m cash.
“Since launch TalkTalk TV has demonstrated its popularity with value-seeking customers to become the UK’s fastest growing TV service,” said Dido Harding, chief executive of 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. The purchase of Tesco’s broadband base is another example of TalkTalk leveraging its national network to grow faster.”
Harding said that the acquisition of the assets will help strengthen TalkTalk’s “quad-play” offering of home phone, broadband, TV and mobile services to customers.
