TalkTalk has announced that it has acquired Tesco’s broadband and fixed line voice base as well as the supermarket’s streaming service Blinkbox in a debt free cash transaction.
Explaining its reasons for buying Blinkbox Talk Talk said that it was attracted by the firm’s established technical expertise in multi-platform, multi-device content delivery and incremental content. The quad play brand said Blinkbox would help it accelerate a number of 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.
The deal also sees Talk Talk acquire Tesco’s broadband and voice base which comes to around 75,000 broadband and 20,000 voice households. The brand said that it believed that this would enable Talk Talk to further leverage the superior scale and economics of its national network.
Dido Harding, CEO of TalkTalk said: ’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.’
Talk Talk said integration of Blinkbox with Talk Talk’s existing TV business is expected to begin immediately with the 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 Talk Talk’s consumer business.