UK service provider TalkTalk has acquired blinkbox, the Tesco-owned, loss-making video-on-demand service.
The assets have been acquired free of debt and as a single transaction for cash. Terms were undisclosed, with some reports nonethtless valuing the transaction in the extremely modest region of £5 million.
As part of the same transaction TalkTalk has also acquired Tesco Broadband, Tesco’s broadband and voice base (75,000 broadband and 20,000 voice households).
TalkTalk TV is already the fastest growing TV platform in the UK with over 1.2 million customers and TalkTalk hopes blinkbox will help accelerate the development of its platform by delivering a number of key initiatives significantly faster, such as offering a TV app to customers for in and out of home access to paid-for content across a range of devices.
“Since launch TalkTalk TV has demonstrated its popularity with value-seeking customers to become the UK’s fastest growing TV service,” comments 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. 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.”
Adrian Letts, blinkbox CEO and co-founder will join TalkTalk as Managing Director for TV and report to Tristia Harrison, Managing Director of our consumer business.