Tesco sells binkbox and broadband to TalkTalk
TalkTalk has acquired the blinkbox Movies business and the Tesco broadband and fixed line voice base from Tesco Plc. The assets have been acquired free of debt and as a single transaction for cash. The announcement comes one day after the beleaguered supermarket revealed plans to close 43 stores and close its staff pension scheme.
On-demand provider of pay content in the UK, blinkbox works across multiple platforms and devices – both inside and outside the home. Its product offering dovetails with that of TalkTalk’s TV platform, which services 1.2 million customers in the UK.
As part of the deal, Adrian Letts, blinkbox CEO and co-founder will join TalkTalk as Managing Director for TV, reporting to Tristia Harrison, Managing Director of TalkTalk’s consumer business.
As part of the same transaction TalkTalk has also acquired Tesco’s broadband and voice base (75,000 broadband and 20,000 voice households). As with the recent acquisition of the Virgin Media National base, customers will be transferred across to the TalkTalk network over the coming months.
“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,” said Dido Harding, Chief Executive of TalkTalk.