Mon, 01 Dec 2014 | DIVISION SALE
Vodafone is looking into relieving Tesco of its underperforming video streaming business Blinkbox.
The mobile phone giant is readying to launch its home broadband internet service next year and wants to boost its TV business in preparation, with the addition of Blinkbox.
Tesco and Vodafone have been engaged in early discussions and no final offer has been made, a person close to the situation clarified. Other interested parties have withdrawn from the bidding, it is understood.
A deal would help Vodafone stay apace with rivals such as BT, which is looking to draw in more customers offering similar bundles of entertainment services.
Blinkbox, which has been on the market for two months already, has been haemorrhaging cash, with its most recently filed accounts showing losses of £18.5 million. Reports say some of the interested parties would have expected Tesco to pay them to take on the business. Still considering its losses and that Tesco would close it down if it isn’t sold, Vodafone may well pay a nominal fee for Blinkbox.
If Vodafone is successful in its purchase, it will benefit from Blinkbox’s strong ties with content rights holders and its workforce of 350 plus, including specialist developers.
An unnamed source said: “Vodafone is basically starting from scratch in content. This will give them a big leg-up. Blinkbox’s market positioning also suits them. It focuses on new films that will be attractive to the premium customers that Vodafone targets.”
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