TalkTalk seals blinkbox buyout
DetailsJoseph O'Halloran | 09 January 2015
Less than two weeks after reports first emerged that the UK ISP was to buy the struggling online video company, TalkTalk has officially confirmed its acquisition of blinkbox Movies from Tesco.
blinkboxDownThe UK supermarket giant's broadband and fixed line voice base was also part of the deal for assets which were acquired free of debt and as a single transaction for an as yet unknown cash amount.
The integration of blinkbox within TalkTalk's existing TV business will begin immediately with the expected benefits of restructuring the combined platform and revenue synergies expected to flow from the end of calendar 2015. Adrian Letts, blinkbox CEO and co-founder, will join TalkTalk as managing director for TV and report to Tristia Harrison, managing director of the ISP's consumer business.
TalkTalk has been successful with its TV offerings over the last two years, adding 185,000 net TV subscribers in the first quarter of 2014, bringing its total to 1.1 million.
"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," commented TalkTalk chief executive Dido Harding. "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."