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 Other interested parties have withdrawn from the bidding, it is understood.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.”
_____________________________________________________________
Related information:
How to profit from buying distressed businesses
Bring to the market this leasehold specialist car sales and servicing facility located in Horncastle, Lincolnshire. The trade was established as a limited company in 2005.
LEASEHOLD
The company is an online vehicle purchasing platform, providing a fast, hassle-free car-selling service for the end user. A competitor to the likes of webuyanycar.com and Motorway, the company is a well-established online vehicle purchasing platform...
Bringing to the market this denim and casual wear retailer, boating a user friendly comprehensive online presence.
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.